Praetorian Group CEO Pleads Guilty in $201M Bitcoin Ponzi, Faces Decades in Prison

Ramil Ventura Palafox, the 60-year-old CEO of Praetorian Group International (PGI), has pleaded guilty to wire fraud and money laundering after orchestrating a $201 million Bitcoin Ponzi scheme that duped more than 90,000 investors worldwide.

Palafox, a dual citizen of the United States and the Philippines, admitted in federal court that PGI promised investors daily returns of up to 3% through high-volume Bitcoin trading.

In reality, prosecutors say the company was never capable of generating such profits and instead used new deposits to pay earlier participants—a textbook Ponzi structure.

Between December 2019 and October 2021, PGI raised more than $201 million, including $171.5 million worth of Bitcoin and $30.3 million in cash. To maintain the illusion of profitability, the company launched an investor portal showing fabricated account growth, which reinforced investor confidence and encouraged reinvestment.

Meanwhile, Palafox siphoned millions for personal use. Court filings show he spent $3 million on at least 20 luxury vehicles—including Lamborghini, Ferrari, Porsche, McLaren, Bentley, and BMW models—and more than $6 million on four homes in Las Vegas and Los Angeles.

He also dropped $329,000 on penthouse hotel stays and another $3 million on clothing, watches, and jewelry from high-end retailers like Cartier, Rolex, Gucci, and Hermes.

Prosecutors revealed he even transferred $800,000 in cash and 100 Bitcoin (then worth $3.3 million) to a family member.

Collapse and Legal Fallout

PGI’s website was seized in 2021 when the scheme unraveled, leaving thousands of victims without access to their funds. In April 2025, the U.S. Securities and Exchange Commission (SEC) formally charged Palafox and PGI Global with defrauding investors of nearly $198 million.

Although PGI raised more than $201 million in total, authorities estimate victims collectively lost at least $62.7 million after payouts and recoveries.

Under his plea deal, Palafox has agreed to pay $62.7 million in restitution. He faces a maximum sentence of 40 years in prison but is expected to receive less under federal sentencing guidelines. Sentencing is scheduled for February 3, 2026, before U.S. District Judge Leonie M. Brinkema.

Another Name in a Growing List of Crypto Ponzis

Palafox’s guilty plea adds to the mounting list of crypto Ponzi schemes in recent years. Earlier this month, a Texas court ruled that Nathan Fuller, owner of Privvy Investments, ran a Ponzi scheme and denied him bankruptcy protection, leaving him liable for $12.5 million in debts.

The CFTC also secured a $228.6 million judgment against pastor Eddy Alexandre, who defrauded 25,000 investors through EminiFX by promising 5–10% weekly returns with a fake “robo-advisor” system. Alexandre is already serving nine years in prison for commodities fraud.

Meanwhile, Forsage co-founder Vladimir Okhotnikov faces U.S. charges over a $340 million Ponzi scheme, and Estonian founders of HashFlare were sentenced for their $577 million fraud, ordered to forfeit nearly $450 million in assets.

Prosecutors and regulators continue to highlight “too good to be true” marketing tactics—like PGI’s 3% daily returns—as a hallmark of crypto fraud.

With multi-level marketing schemes still prevalent in the industry, authorities urge investors to exercise skepticism, seek regulatory clarity, and conduct due diligence before committing funds to high-yield crypto platforms.