Praetorian Group CEO Gets 20 Years Sentence for $200M Bitcoin Ponzi Scheme

Ramil Ventura Palafox, the 61-year-old CEO of Praetorian Group International (PGI), has been sentenced to 20 years in federal prison in Alexandria, Virginia. The dual U.S.-Philippine citizen was found guilty of orchestrating a massive Ponzi scheme that deceived over 90,000 investors globally, funneling more than $200 million between December 2019 and October 2021. 

Palafox made false promises of daily returns ranging from 0.5% to 3% through high-volume bitcoin trading. However, the investigation revealed that he misused the funds from his deception for lavish purchases and personal transfers while his victims faced significant losses.

Same Old Tactic

Palafox promoted PGI as a multi-level marketing firm that offered trading options in bitcoin. Investors poured in over $201 million, including $30.3 million in cash and 8,198 BTC, valued at approximately $171.5 million at the time. Palafox asserted that his advanced trading strategies consistently generated high returns. However, the actual trading activity ran afoul of these claims. 

The scheme used incoming funds from new investors to pay off earlier ones, giving a deceptive impression of success. Many overlooked warning signs, such as promises of guaranteed returns in a volatility-driven market. The unsustainable model finally crumbled when users began requesting withdrawals. 

As a result, over 90,000 investors from different countries lost their savings due to fluctuating bitcoin prices. The situation shows how Ponzi schemes are changing to fit the digital asset world. Authorities have noted that weak regulations let these schemes thrive.

CEO Sentenced to 20 Years 

In September 2025, Palafox admitted to charges of wire fraud and money laundering. Although he faced a potential sentence of up to 40 years in prison, District Judge Leonie M. Brinkema ultimately imposed a 20-year term after examining the case. As part of his plea agreement, he is required to pay $62,692,007 in restitution to his victims. 

The FBI continues to provide updates to assist claimants in the restitution process. The case reflects a robust federal response to crypto fraud, which mirrors efforts to tackle similar issues internationally. Meanwhile, regulators are keeping a close eye on multi-level marketing schemes related to digital currencies. 

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