Judge Sentences PGI Founder to 20 Years for $201 Million Bitcoin Ponzi Scheme

Deceptive Trading Promises

A U.S. judge has sentenced Ramil Ventura Palafox, 61, to 20 years in prison for orchestrating a global Ponzi scheme through his company, Praetorian Group International, which defrauded more than 90,000 investors of more than $201 million.

Palafox, a dual citizen of the United States and the Philippines, positioned himself as PGI’s chairman and CEO, touting the firm as a bitcoin trading powerhouse. He lured investors with promises of daily returns ranging from 0.5% to 3%. In reality, PGI was not trading bitcoin at a scale capable of delivering such profits. Instead, Palafox recycled investor funds to pay earlier participants, a classic Ponzi tactic.

From December 2019 to October 2021, PGI collected more than $30 million in fiat currency and at least 8,198 bitcoin valued at $171 million. Prosecutors said victims ultimately lost $62.6 million. To sustain the illusion, Palafox launched an online portal that falsely showed investments growing in value, convincing victims their money was safe.

Court filings revealed Palafox spent millions of investor dollars on luxury goods and real estate. This included 20 high-end cars worth $3 million, featuring brands like Lamborghini, Ferrari, Porsche and Bentley, as well as four homes in Las Vegas and Los Angeles valued at more than $6 million.

Palafox also spent $329,000 on penthouse suites at luxury hotels and $3 million on designer clothing, jewelry and watches from Gucci, Versace, Cartier, Rolex and Hermes. Furthermore, he transferred $800,000 in cash and 100 bitcoin—then worth $3.3 million—to a family member.

The case was investigated by the FBI Washington Field Office and the IRS Criminal Investigation Washington, D.C., Field Office. Assistant U.S. Attorneys Jack Morgan and Annie Zanobini, along with former Assistant U.S. Attorney Zoe Bedell, led the prosecution.

FAQ ❓

• Who was sentenced in the U.S.? Ramil Ventura Palafox, a U.S.-Philippines dual citizen, received 20 years in prison for running a bitcoin Ponzi scheme.
• How much money was involved globally? PGI defrauded more than 90,000 investors worldwide of over $201 million.
• Where did Palafox spend investor funds? He bought luxury cars, homes in Las Vegas and Los Angeles, designer goods, and penthouse suites.
• Which agencies led the case? The FBI Washington Field Office and IRS Criminal Investigation in D.C. investigated and prosecuted.