Last updated on March 9th, 2026 at 04:11 am
Ramil Ventura Palafox, the founder and chief executive of Praetorian Group International (PGI), has been sentenced to 20 years in federal prison for orchestrating a massive bitcoin Ponzi scheme that defrauded more than 90,000 investors worldwide.
The sentence was handed down by the U.S. Attorney’s Office for the Eastern District of Virginia following Palafox’s conviction on wire fraud and money laundering charges. Prosecutors said the scheme raised over $200 million between December 2019 and October 2021.
Ramil Ventura Palafox, 61, CEO of Praetorian Group International, was sentenced today to 20 years in prison following his conviction for a Ponzi scheme that defrauded over 90,000 investors worldwide.https://t.co/jBWK5mnOPH
— U.S. Attorney EDVA (@EDVAnews) February 12, 2026
False promises of daily bitcoin returns
According to court filings, Palafox marketed PGI as a bitcoin trading and multi-level marketing platform, promising investors daily returns ranging from 0.5% to 3%. In reality, the company was not generating the profits it claimed. Instead, earlier investors were paid with funds from new participants, a classic Ponzi structure.
Authorities said investors contributed more than $201 million, including over 8,000 bitcoin and tens of millions of dollars in fiat currency. Losses are estimated at more than $62 million.
To maintain the illusion of profitability, Palafox allegedly operated an online portal that falsely displayed consistent gains in investor accounts, reinforcing confidence and encouraging further deposits.
Investor funds fueled luxury lifestyle
Prosecutors detailed how investor money was diverted to fund an extravagant lifestyle. Court documents show millions were spent on luxury vehicles, high-end retail purchases, penthouse stays, and multimillion-dollar homes in Las Vegas and Los Angeles. Funds were also transferred to a family member, including both cash and bitcoin.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Authorities said victims may be eligible for restitution, with further details available through federal court channels.
Meanwhile, the cryptocurrency industry is facing a record-breaking surge in “wrench attacks,” physical assaults, kidnappings, and home invasions aimed at coercing victims into surrendering digital assets, with reported incidents jumping more than 169%.
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