  
 
 
Federal prosecutors have secured a two-decade prison term for the CEO of Praetorian Group International (PGI) for running a $200 million crypto investment scheme that defrauded more than 90,000 investors worldwide.
Massive Losses For Investors
From December 2019 to October 2021, Ramil Ventura Palafox, a dual U.S.-Philippine citizen, told investors that his firm engaged in high-volume Bitcoin trading, promising up to 3% daily returns.
However, the company never conducted Bitcoin trades at a scale sufficient to generate the promised returns, according to a Thursday statement from the U.S. Attorney’s Office for the Eastern District of Virginia. Instead, Palafox relied on funds from new investors — or from the victims themselves — to pay earlier participants, following a textbook Ponzi scheme structure.
During that time, over 90,000 investors globally contributed more than $201 million to PGI, including at least $30.3 million in cash and 8,198 BTC, valued at roughly $171.5 million at the time. The scheme ultimately resulted in at least $62.7 million in losses for investors.
Palafox reportedly spent roughly $3 million on 20 luxury vehicles, over $6 million on four properties in Las Vegas and Los Angeles, and hundreds of thousands on penthouse suites and designer items from brands including Rolex, Cartier, and Gucci.



 PGI’s online portal displayed fake account balances and fabricated profits, giving investors a false sense of security. Prosecutors said the portal was key to sustaining the illusion until withdrawal demands grew, ultimately exposing the scheme.
“Palafox maintained a PGI website and online portal that falsely displayed steady gains, misleading victims into believing their accounts were growing and secure,” the Department of Justice stated.
Under his plea agreement, Palafox has agreed to pay $62.7 million in restitution. The DOJ noted that victims may be eligible for restitution through the Federal Bureau of Investigation. The SEC is also seeking civil penalties, and Palafox remains prohibited from engaging in securities-related activities.
