The US Division of Justice introduced that Ramil Ventura Palafox, the CEO of Praetorian Group Worldwide (PGI), was sentenced to twenty years in jail.
Prosecutors said that Palafox operated a $200 million Bitcoin-based Ponzi scheme that defrauded greater than 90,000 traders the world over.
Bitcoin Fraud Case
In keeping with courtroom paperwork, Palafox, the 61-year-old twin citizen of the USA and the Philippines, owned and managed PGI and served as its chairman, chief government officer, and chief promoter. Prosecutors mentioned Palafox falsely claimed that PGI was engaged in Bitcoin buying and selling and marketed the agency as a multi-level advertising funding alternative. He promised traders every day returns starting from 0.5% to three%.
In actuality, PGI was not buying and selling Bitcoin at a scale able to producing these returns, and investor payouts have been funded utilizing victims’ personal deposits or cash from new traders. From December 2019 via October 2021, not less than 90,000 traders invested greater than $201 million in PGI, together with roughly $30.3 million in fiat forex and not less than 8,198 BTC, price round $171.5 million on the time.
Because of the scheme, investor losses rose to over $62 million. Courtroom data reveal that Palafox created a web based PGI portal that allowed traders to trace what he represented as their funding efficiency. Between 2020 and 2021, the web site persistently and fraudulently displayed features, which led victims to consider their investments have been worthwhile and safe.
Luxurious Automobiles, Mansions, and Lies
Palafox spent roughly $3 million on 20 luxurious autos, together with fashions from Porsche, Lamborghini, McLaren, Ferrari, BMW, and Bentley. He additionally spent about $329,000 on penthouse suites at a luxurious resort chain and bought 4 properties in Las Vegas and Los Angeles, estimated to be greater than $6 million.
Extra spending included roughly $3 million on luxurious clothes, watches, jewellery, and residential furnishings from retailers akin to Louboutin, Neiman Marcus, Gucci, Versace, Ferragamo, Valentino, Cartier, Rolex, and Hermès. Prosecutors mentioned Palafox additionally transferred not less than $800,000 in fiat forex and 100 BTC, which was then equal to $3.3 million, to a member of the family.
The Justice Division mentioned PGI victims could also be eligible for restitution.
Individually, PGI World’s UK entity was shut down by the UK Excessive Courtroom again in 2022. In April 2025, the US Securities and Change Fee (SEC) charged Palafox with orchestrating the huge Ponzi scheme.
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