PGI CEO Admits to Fraud in $200 Million Bitcoin Ponzi Scheme
- Palafox Confesses to Fraud Linked to Bitcoin Ponzi Scheme
- More than 90.000 investors harmed in several countries
- Sentence could reach 40 years in prison
Ramil Ventura Palafox, CEO of Praetorian Group International (PGI), pleaded guilty to wire fraud and money laundering charges related to a $200 million Bitcoin Ponzi scheme. According to the U.S. Department of Justice (DOJ), the 60-year-old executive, a U.S. and Filipino citizen, defrauded more than 90.000 investors worldwide between 2019 and 2021.
According to prosecutors , Palafox falsely claimed that PGI conducted high-volume Bitcoin trading, promising daily returns of between 0,5% and 3%. In practice, the company lacked the infrastructure to generate such profits, and the executive used deposits from new participants to pay existing ones, exemplifying the classic pyramid scheme model.
Between December 2019 and October 2021, investors transferred approximately US$201 million to PGI, including US$30,3 million in cash and 8.198 BTC valued at US$171,5 million. It is estimated that the victims accumulated losses of at least US$62,7 million. PGI's official website reinforced the fraud by displaying consistent and misleading results, leading customers to believe their investments were safe.
The DOJ also revealed details about the illicit use of funds. Palafox spent approximately $3 million on 20 luxury cars, including Porsches, Lamborghinis, Bentleys, McLarens, and Ferraris. He also allocated approximately $329.000 to hotel penthouses, over $6 million to residences in Las Vegas and Los Angeles, and another $3 million to designer goods and luxury furniture. He also transferred at least $800.000 in cash and 100 BTC, valued at $3,3 million at the time, to a family member.
The executive will be sentenced on February 3, 2026, and could face up to 40 years in prison. As part of his plea agreement, Palafox agreed to return approximately $62,7 million in restitution to his victims. However, federal sentencing guidelines in the US often take mitigating factors into account, which could result in a sentence below the maximum.
