CEO Sentenced for Bitcoin Ponzi Scheme
A CEO of a cryptocurrency trading and multi-level marketing enterprise has been sentenced to two decades behind bars due to his involvement in a significant Bitcoin Ponzi operation that affected tens of thousands globally. Ramil Ventura Palafox, 61, who previously held the positions of CEO and Chairman at Praetorian Group International (PGI), was handed the sentence on Thursday following his conviction on several counts, including wire fraud and money laundering.
Details of the Fraudulent Operation
Court records revealed that Palafox managed to attract more than 90,000 individuals into what he claimed was a Bitcoin trading program, which falsely promised daily returns ranging from 0.5% to 3%. However, prosecutors emphasized that this program was never legitimately engaged in trading; instead, it operated on a typical Ponzi scheme model, whereby the returns to earlier investors were sourced from the capital contributed by later investors.
Financial Impact and Misappropriation of Funds
The total funds collected from victims exceeded $200 million, with numerous individuals suffering documented losses in the millions. Investigations indicated that Palafox lavishly misappropriated funds for personal expenses, indulging in a lifestyle that included luxury automobiles, high-end fashion items, and costly real estate. According to the Department of Justice, Palafox illicitly acquired around 20 luxury vehicles worth approximately $3 million, including brands such as Porsche, Lamborghini, McLaren, Ferrari, BMW, and Bentley.
Additionally, he reportedly spent around $329,000 on luxury hotel penthouse suites and invested over $6 million on four properties located in Las Vegas and Los Angeles. His spending spree also encompassed nearly $3 million on upscale clothing, watches, and jewelry from high-profile retailers, including Gucci, Versace, and Cartier.
Legal Proceedings and Ongoing Investigations
Palafox initially entered a guilty plea in September 2025, admitting his complicity in the fraudulent scheme that lasted from December 2019 until October 2021. The investigation was a collaborative effort between the FBI’s Washington Field Office and the IRS Criminal Investigation Division. Some of the victims have received restitution, and the search for remaining assets continues, aiming to repay those affected by the fraud.
