Yeliz Akmaca 
A major Bitcoin Ponzi scheme has come to light. Praetorian Group International CEO (PGI) Ramil Ventura Palafox pleaded guilty in the U.S. to a $200 million crypto fraud, facing up to 40 years in prison.
Palafox’s $200 Million Bitcoin Ponzi Scheme
Praetorian Group International (PGI) CEO Ramil Ventura Palafox lured investors by promising daily returns between 0.5% and 3%. He falsely claimed that PGI engaged in high-volume Bitcoin trading. In reality, the company recycled funds from new participants to pay earlier investors.
From December 2019 to October 2021, more than 90,000 investors deposited at least $201 million into PGI. This included $30.3 million in cash and 8,198 BTC worth $171.5 million at the time. At least $62.7 million in investor losses were recorded.
Luxury Spending with Investor Funds
Court documents revealed that Palafox used investor money for personal luxuries instead of trading. Key expenses included:
- $3 million on 20 luxury cars (Porsche, Lamborghini, Bentley, McLaren, Ferrari)
- Over $6 million on homes in Las Vegas and Los Angeles
- $329,000 on luxury hotel penthouses
- Millions on designer goods from Gucci, Cartier, Rolex, and Hermès
- At least $800,000 in cash and 100 Bitcoin transferred to a family member
- These lavish purchases highlighted how investors’ funds fueled a fraudulent lifestyle.
Court Proceedings and Sentencing
According to the U.S. Department of Justice, Palafox pleaded guilty to wire fraud and money laundering. He is scheduled to be sentenced on February 3, 2026, in Virginia. He faces up to 40 years in prison, though federal judges typically impose sentences below the maximum.
Under his plea deal, Palafox agreed to pay $62.7 million in restitution. Prosecutors compared the case to notorious Ponzi schemes like BitConnect, PlusToken, and OneCoin. Experts emphasized that the real issue is fraudulent behavior, not Bitcoin itself.
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