Luxury Spree and Lies: CEO’s Bitcoin Ponzi Scheme Costs 90K Investors $62M

Ramil Ventura Palafox, the founder and CEO of Praetorian Group International (PGI), has pleaded guilty to charges of wire fraud and money laundering in a $200 million Bitcoin Ponzi scheme that defrauded over 90,000 investors globally. Palafox, a dual citizen of the United States and the Philippines, operated PGI as a Bitcoin trading firm, falsely claiming that the company engaged in high-volume trading and offering daily returns of 0.5% to 3% to investors. In reality, PGI’s trading activities were not capable of generating the promised returns, and Palafox used incoming funds from new investors to pay out returns to earlier participants.

The scheme, which operated between December 2019 and October 2021, involved more than $201 million in investor contributions, including $30.295 million in fiat currency and 8,198 Bitcoin, valued at approximately $171.499 million. Investors collectively lost at least $62.692 million as a result of the scheme. Palafox created a false illusion of profitability by maintaining an online portal that displayed fabricated investment gains, misleading investors into believing their funds were secure and growing.

Beyond defrauding investors, Palafox used a significant portion of the funds for personal expenditures. He spent roughly $3 million on 20 luxury vehicles from brands including Porsche, Lamborghini, Ferrari, and McLaren, and $329,000 on penthouse hotel suites. He also spent $6 million on real estate in Las Vegas and Los Angeles and an additional $3 million on high-end fashion items, jewelry, and home furnishings from luxury retailers such as Gucci, Cartier, and Rolex. Palafox also transferred $800,000 in fiat currency and 100 Bitcoin—worth $3.3 million at the time—to a family member.

As part of his plea agreement, Palafox has agreed to pay $62.692 million in restitution to victims. He is scheduled to be sentenced on February 3, 2026, and could face up to 40 years in prison. Federal sentencing guidelines typically result in sentences below the maximum, with judges considering various factors, including the U.S. Sentencing Guidelines and the nature of the offense. The case was prosecuted by Assistant U.S. Attorneys Jack Morgan, Zoe Bedell, and Annie Zanobini.

The case highlights the growing risks associated with Ponzi schemes in the cryptocurrency space, particularly those that combine fraudulent investment promises with multi-level marketing (MLM) structures. Analysts have described the Praetorian model as a “textbook Ponzi scheme,” noting that the structure amplified the illusion of legitimacy through recruitment incentives and fabricated returns. The case underscores the need for greater investor awareness and regulatory vigilance in a sector increasingly vulnerable to fraud.