Ponzi Kingpin Spent Millions on Luxury While Victims Lost $62M in Crypto Scam

Ramil Ventura Palafox, the CEO of Praetorian Group International (PGI), has pleaded guilty to orchestrating a $200 million Bitcoin Ponzi scheme that defrauded over 90,000 investors between December 2019 and October 2021. According to court documents, Palafox falsely promised investors daily returns of 0.5 to 3% by claiming PGI was engaged in high-volume Bitcoin trading. However, the firm did not operate at a scale capable of delivering such returns, and Palafox used funds from new investors to pay earlier ones, a classic structure of a Ponzi scheme.

The scheme reportedly raised more than $201 million, with $30.3 million in fiat currency and over 8,000 Bitcoin, valued at approximately $171.5 million. Investors suffered collective losses totaling at least $62.69 million. Palafox further misled victims by operating an online portal that displayed fabricated account growth, reinforcing the illusion of profitability.

Palafox’s personal expenditures from the scheme were substantial. He spent $3 million on 20 luxury vehicles, including models from Lamborghini, Ferrari, and Porsche, while acquiring four homes in Las Vegas and Los Angeles totaling over $6 million in value. He also spent $329,000 on penthouse hotel stays and $3 million on luxury goods from brands such as Cartier, Rolex, and Gucci. Additionally, Palafox transferred $800,000 in cash and 100 Bitcoin, valued at $3.3 million, to a family member.

The Securities and Exchange Commission (SEC) also charged Palafox with defrauding investors as part of a broader crypto and forex Ponzi scheme, seeking permanent injunctive relief and civil penalties. As part of his plea agreement, Palafox has agreed to pay $62.69 million in restitution to victims and faces up to 40 years in prison. Sentencing is scheduled for February 3, 2026.

Palafox’s case underscores the growing prevalence of Ponzi schemes in the crypto space. According to recent data, Ponzi schemes accounted for 22% of reported crypto scams in 2025, with $2.5 billion in losses attributed to such schemes in 2024. These schemes often promise high returns through fake trading platforms or staking opportunities, leveraging decentralized finance (DeFi) to attract unsuspecting investors. The U.S. remains a notable target, with North America accounting for 27% of Ponzi-related losses.

Palafox’s guilty plea is part of a broader crackdown on fraudulent crypto activities by U.S. authorities. The case was prosecuted by Assistant U.S. Attorneys Jack Morgan, Zoe Bedell, and Annie Zanobini, with support from the FBI and the IRS Criminal Investigation division. The case highlights the increasing regulatory scrutiny in the crypto space and the federal government’s commitment to holding perpetrators accountable.