Praetorian Group International (PGI) CEO Ramil Ventura Palafox pleaded guilty to fraudulent money laundering fees with investors. The fees were tied to a $200 million Ponzi scheme that scam at least 90,000 investors worldwide.
Parafox, 60, is a dual citizen of the United States and the Philippines. He served as CEO of PGI from December 2019 to October 2021. During that period, the court found that FIAT had more than $30 million and 8,100 BTC had sought over $20 million from investors, including at the time, more than $171 million. It is currently worth nearly $1 billion.
We at DOJ revealed that Palafox used investor money to be self-rich
According to the court statementPalafox promised daily returns of 0.5% to 3% on suspicion of Bitcoin trading program, but PGI did not work on a scale that could generate such profits. The application revealed that the scheme relies on investors’ funds from new participants to pay previous investors. Investors’ estimated losses were approximately $62.7 million.
Ramil Ventura Palafox, CEO of Praetorian Group International, 60, pleaded guilty to the $2 million Bitcoin Ponzi scheme that scams more than 90,000 investors around the world.
– US Lawyer EDVA (@edvanews) September 17, 2025
The statement revealed that Palafox used a considerable amount of investor money to be self-rich. He spent about $3 million on 20 luxury vehicles, and homes in Las Vegas and Los Angeles worth more than $6 million. He also spent about $329,000 on penthouses, expensive jewelry, clothing and furniture.
He transferred to a family worth around $3.3 million with at least $800,000 of Fiat and 100 BTC, according to a court statement.
PGI is said to have run another investor portal with fraudulent balances and fictitious returns. This is a conspiracy to lure the false impression that investors are safely increasing their investors. The Ponzi scheme came out after increasing pressure from demands for non-sorted investors withdrawal.
Prosecutors in the case include US lawyers Jack Morgan, Zoe Bedell and Assistant Annie Zanobini. US lawyer Erik S. Siebert, FBI special agent Reid Davis, and IRS-CI special agent Kareem A. Carter have announced their pleas after being approved by US District Judge Leonie M. Brinkema.
Some analysts describe the PGI scheme as the textbook Ponzi scheme.
Dana Dadybayo, a lead in research and strategy in an unstoppable wallet, compared the case to BitConnect, Plustoken, and Onecoin. He revealed that PGI relies on a multi-level marketing model and promises unrealistic returns that can only be funded by a new influx of investors. He emphasized that the scheme provides lessons to regulators that the actual problem is not fundamental technology but fraudulent behavior. He sought strong financial literacy, red flag recognition and international adjustments.
Former PGI boss who was sentenced in February 2026
PGI CEO will be sentenced to 40 years in prison on February 3, 2026. He also agreed to pay $62.7 million in reparations. However, if you consider US sentencing guidelines, Palafox could receive a maximum sentence lower than 40 years.
A similar textbook Ponzi scheme has previously scamned investors, such as the BitConnect scheme. Cryptopolitan It has been reported That BitConnect has invited investors with a massive return promise through non-existent trading bots. That native token surged to nearly $400 before collapsed to $30 following regulatory crackdowns in Texas and North Carolina. The SEC has indicted 12 promoters related to the scheme, resulting in millions of dollars in penalties.
The U.S. Department of Justice has compensated the victims of BitConnect fraud through a $56 million sale seized on digital assets from fraud lead promoter Glenn Alkaro. DOJ He was indicted He scams global investors out of more than $2 billion. He was later sentenced to 38 months in January 2022 for his role in the Ponzi scheme.
Bitcoin is trading It was an increase of 0.6% over the past 24 hours at $117,183.50. The token has experienced 25.39% YTD in the past few months despite facing competition with altcoins fueled influx of facilities. BTC maintains its largest market capitalization ahead of Ethereum at $2.33 trillion.
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