A US court has sentenced the CEO of Bitcoin trading firm Praetorian Group International (PGI) to 20 years in prison after convicting him of operating a massive Ponzi scheme. The fraudulent investment platform, which falsely claimed to generate profits through cryptocurrency trading, has misappropriated substantial capital from tens of thousands of investors worldwide.
Over 8,000 Bitcoin in Palafox Scam Operation – DOJ
According to one recent edition Through the DOJ, Ramil Ventura Palafox, a 61-year-old dual citizen of the United States and the Philippines, orchestrated a sophisticated fraudulent operation through his registered trading company, PGI. The DOJ notes explain that Palafox, as chairman, CEO and chief promoter, marketed PGI as a Bitcoin trading firm that could generate daily returns ranging from 0.5% to 3%. However, investigations revealed that the company was not conducting legitimate bitcoin trading on a scale that could support such profits.
The scheme reportedly ran between December 2019 and October 2021. During this period, PGI attracted at least 90,000 investors worldwide who collectively invested more than $201 million in the platform. This included a contribution of more than $30 million in fiat currency and approximately 8,198 bitcoin worth more than $171 million at the time of the investment. Despite these significant inflows, authorities found that payouts to investors were largely funded by money obtained from newer participants rather than actual trading profits.
To maintain investor confidence, Palafox has taken another drastic step by setting up an online portal that displays fabricated data on investment performance. Between 2020 and 2021, the portal showed consistently rising account balances, convincing investors that their funds were safe and generating reliable returns.
Meanwhile, investigations also revealed large-scale misuse of investor funds for personal luxury expenses. Palafox reportedly spent approximately $3 million on the purchase of twenty luxury vehicles, while spending equal amounts on accessories such as jewelry, clothing, watches, etc., among other forms of embezzlement. The American-Filipino was found guilty of bank fraud and money laundering and is expected to spend the next 20 years in prison.
FBI Investigates Possible Restitution for BGA Victims
In other developments, it is the Federal Bureau of Investigation’s Washington Field Office currently working to identify individuals who suffered financial losses due to investments in BGA between 2020 and 2021.
Following Palafox’s initial conviction in September 2025, federal attorneys encouraged individuals who believe they may be eligible for restitution payments or in need of victim assistance to contact us and complete the relevant form. Notably, total losses associated with the Bitcoin Ponzi scheme are currently estimated at $62.7 million.
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