Ramil Ventura Palafox, the CEO of a Bitcoin investment and multi-level marketing firm, has pleaded guilty to charges of wire fraud and money laundering after orchestrating a fraudulent scheme that deceived over 90,000 investors worldwide. The 60-year-old, a dual citizen of the United States and the Philippines, admitted to using his company, Praetorian Group International (PGI), to lure individuals with the promise of daily profits.
Between December 2019 and October 2021, PGI raised more than $201 million, comprising approximately $30.3 million in cash and over 8,000 bitcoins valued at around $171.5 million. The U.S. Securities and Exchange Commission (SEC) charged Palafox and PGI in April 2022, accusing them of defrauding investors out of $198 million through a crypto and forex Ponzi scheme. Investigators allege that Palafox misappropriated funds for personal luxury purchases and used money from newer investors to pay off earlier ones, a classic hallmark of a Ponzi scheme.
Court documents reveal that Palafox had claimed PGI was involved in high-volume Bitcoin trading, offering investors returns between 0.5% and 3% daily. However, prosecutors argued that the firm was not capable of generating such profits. To maintain the façade, Palafox created an investor portal that displayed false account growth, reinforcing the illusion of security for participants.
The scale of Palafox’s misappropriation is notable. He reportedly spent around $3 million on luxury vehicles, including brands like Lamborghini, Ferrari, and Bentley. Additionally, he purchased four homes in Las Vegas and Los Angeles for more than $6 million, incurred $329,000 on penthouse hotel accommodations, and invested another $3 million in high-end clothing and luxury goods from retailers like Cartier and Rolex. There is also evidence that he transferred at least $800,000 in cash and 100 bitcoins, valued then at $3.3 million, to a family member.
Despite PGI raising over $201 million, victims of the scheme collectively lost at least $62.7 million, many of whom have been left without access to their investments since the operation collapsed in late 2021. As part of his plea agreement, Palafox has committed to paying this amount in restitution to the victims, who are advised to follow updates on the Justice Department’s official website.
Palafox is scheduled to be sentenced on February 3, 2026, by U.S. District Judge Leonie M. Brinkema. He faces a maximum sentence of 40 years in prison, though he is likely to receive a lesser sentence according to federal guidelines.
This case adds to the growing list of crypto Ponzi schemes. Just recently, Nathan Fuller, owner of Privvy Investments, was denied bankruptcy protection after being implicated in a Ponzi scheme. In another notable case, Kevin Spacey’s new film has links to a co-writer facing charges linked to a $340 million Ponzi scheme. Similarly, the Commodity Futures Trading Commission secured a substantial judgment against pastor Eddy Alexandre for defrauding thousands of investors through a different crypto Ponzi operation.
The indictment of Palafox serves as a reminder of the proliferation of fraudulent schemes within the cryptocurrency industry, raising concerns about investor security and the pressing need for oversight.
