TLDR
- Ramil Palafox sentenced to 20 years for $200M crypto Ponzi scheme.
- Over 90,000 investors lost more than $62.7 million in the scheme.
- PGI collected over 8,000 bitcoin between 2019 and 2021.
- Funds were used for luxury cars, homes, and personal expenses.
Ramil Ventura Palafox has been sentenced to 20 years in prison for running a global bitcoin Ponzi scheme. Federal prosecutors said he misled investors and raised more than $200 million through false promises.
The U.S. Attorney’s Office for the Eastern District of Virginia announced the sentence on Thursday. Authorities said the scheme involved bitcoin and foreign exchange trading but did not conduct real trading activity.
Scheme Raised Millions From Global Investors
Palafox, 61, founded Praetorian Group International, also known as PGI Global. He told investors the company would generate daily returns of up to 3% through bitcoin and forex trading.
Court records show PGI collected more than $201 million from late 2019 to 2021. The funds included over 8,000 bitcoin contributed by investors worldwide. More than 90,000 individuals joined the platform during that period.
Prosecutors said investors were given access to an online portal. The portal displayed daily profits and account balances. However, the reported returns were fabricated and did not reflect actual trading activity.
Instead of investing the funds, Palafox used money from new investors to pay earlier participants. Authorities described the operation as a classic Ponzi structure. Over $62.7 million was drained from victims, according to officials.
Funds Spent on Luxury Assets and Personal Use
Federal authorities said Palafox diverted millions of dollars for personal expenses. He purchased luxury homes in Las Vegas and Los Angeles. He also stayed in penthouse suites at high-end hotels.
Prosecutors reported that he spent about $3 million on luxury cars. The vehicles included high-end brands such as Lamborghini. Another $3 million was used for designer clothing, watches, and jewelry.
Investigators stated that investor funds supported these purchases. Meanwhile, account statements on the PGI platform continued to show false profits. Victims were led to believe their investments were growing steadily.
Investigation and Legal Action
The Federal Bureau of Investigation and the Internal Revenue Service conducted the investigation. Authorities gathered financial records and traced cryptocurrency transactions linked to the scheme. The U.S. Attorney’s Office confirmed the 20-year sentence in federal court. Officials said the punishment reflects the scale of the fraud and the number of victims involved.
In addition to the criminal case, the Securities and Exchange Commission has filed civil actions. The SEC is seeking financial penalties and other remedies. Palafox remains banned from handling securities. Authorities stated that victims may be eligible for restitution. Information about recovery efforts will be provided through official court channels.
The case marks a major enforcement action involving cryptocurrency-related fraud. Prosecutors said the sentence sends a clear message that digital asset schemes will face federal prosecution. Palafox will serve his prison term in federal custody. Further proceedings related to asset recovery are expected as part of the case process.
