CEO Sentenced to 20 Years for Operating $201 Million Global Bitcoin Ponzi Scheme
LAS VEGAS — In a landmark ruling for the digital asset industry, Ramil Ventura Palafox, the CEO of Praetorian Group International (PGI), was sentenced on Thursday to 20 years in federal prison. The sentencing concludes a massive investigation into a sophisticated Ponzi scheme that successfully defrauded over 90,000 investors across the globe, amassing more than $201 million in illicit funds.+1
The Illusion of High-Yield Returns
Between December 2019 and October 2021, Palafox lured victims by promising “guaranteed” daily returns ranging from 0.5% to 3%. According to court documents, PGI claimed these profits were generated through high-volume, AI-driven Bitcoin trading. However, federal investigators revealed that the company lacked the infrastructure to produce such returns. Instead, the operation functioned as a classic Ponzi scheme, utilizing capital from new participants to pay out “earnings” to earlier investors while maintaining the facade of a booming enterprise.+1
A Life of Extravagant Excess
The Department of Justice detailed how Palafox diverted tens of millions of dollars to fund a lifestyle of extreme luxury. The stolen proceeds were used to purchase:
- $6 million in real estate across Las Vegas and Los Angeles.
- $3 million on a fleet of 20 high-end exotic vehicles.
- Millions more on designer clothing, luxury hotel penthouses, and high-end jewelry from brands like Gucci and Hermès.
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