Bitcoin trading firm CEO pleads guilty to $200 million Ponzi scheme, faces up to 40 years in prison

Praetorian Group International Chief Executive Officer Ramil Ventura Palafox pleaded guilty to wire fraud and money laundering charges related to a $200 million bitcoin Ponzi scheme that defrauded more than 90,000 investors worldwide.

Court documents stated that Palafox, 60, a dual citizen of the U.S. and the Philippines, owned and operated PGI, serving as its chairman, CEO, and chief promoter, the DOJ said in a Wednesday release . Palafox falsely told investors that PGI engaged in high-volume bitcoin trading and promised daily returns of 0.5% to 3%. In reality, PGI's trading activity lacked the scale needed to generate such profits, and Palafox was instead using investors' own money — or funds from new investors — to pay out returns.

According to the U.S. Attorney's office, between December 2019 and October 2021, over 90,000 investors deposited over $201 million into PGI, including approximately $30.3 million in cash and 8,198 BTC worth $171.5 million. Palafox's scheme left them with losses of at least $62.7 million. The PGI website falsely showed steady gains, deceiving victims into believing their investments were safe and profitable.

Palafox faces up to 40 years in prison

Palafox reportedly used investor funds for both personal luxuries and to further promote the fraudulent scheme, spending about $3 million on 20 high-end cars — including Porsches, Lamborghinis, Bentleys, McLarens, and Ferraris — along with $329,000 on luxury hotel penthouses and more than $6 million on homes in Las Vegas and Los Angeles.

Another $3 million was spent on designer goods and furnishings from brands like Gucci, Cartier, Rolex, and Hermès, and he also transferred at least $800,000 in cash and 100 BTC (worth $3.3 million at the time) to a family member, the DOJ said.

Palafox is scheduled to be sentenced on Feb. 3, 2026, and faces up to 40 years in prison. Under his plea deal, he agreed to repay approximately $62.7 million in restitution. However, federal district court judges typically impose sentences below the maximum penalties after weighing the U.S. Sentencing Guidelines and other statutory factors.