PGI CEO Sentenced to 20 Years in $200 Million Bitcoin Ponzi Scheme

The CEO of PGI has spent millions on luxury cars, houses, hotels, designer clothes, jewelry and watches with money from investors.

The US Department of Justice has announced that Ramil Ventura Palafox, the CEO of Praetorian Group International (PGI), has been sentenced to 20 years in prison.

Prosecutors said Palafox ran a $200 million Bitcoin-based Ponzi scheme that defrauded more than 90,000 investors around the world.

Bitcoin fraud case

According to court documents, Palafox, the 61-year-old dual citizen of the United States and the Philippines, owned and controlled the BGA and served as chairman, general manager and chief promoter. Prosecutors said Palafox falsely claimed that PGI was engaged in Bitcoin trading and marketed the company as an opportunity for multi-level marketing investments. He promised investors daily returns ranging from 0.5% to 3%.

In reality, PGI did not trade Bitcoin on a scale that could generate these returns, and the payouts to investors were funded with victims’ own deposits or money from new investors. From December 2019 through October 2021, at least 90,000 investors invested more than $201 million in PGI, including approximately $30.3 million in fiat money and at least 8,198 BTC, worth approximately $171.5 million at the time.

As a result of the scheme, losses to investors increased to more than $62 million. Court records show Palafox created an online BGA portal that allowed investors to track what he represented as their investment performance. Between 2020 and 2021, the website consistently and fraudulently showed profits, misleading victims into thinking their investments were profitable and safe.

Luxury cars, mansions and lies

Palafox spent about $3 million on 20 luxury vehicles, including models from Porsche, Lamborghini, McLaren, Ferrari, BMW and Bentley. He also spent about $329,000 on penthouse suites at a luxury hotel chain and bought four homes in Las Vegas and Los Angeles valued at more than $6 million.

Additional spending includes approximately $3 million on luxury clothing, watches, jewelry and home furnishings from retailers such as Louboutin, Neiman Marcus, Gucci, Versace, Ferragamo, Valentino, Cartier, Rolex and Hermès. Prosecutors said Palafox also transferred at least $800,000 in fiat currency and 100 BTC, which was then equal to $3.3 million, to a family member.

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The Justice Department said victims of the BGA may be eligible for restitution.

In addition, PGI Global’s UK entity was closed down by the UK Supreme Court in 2022. In April 2025, the US Securities and Exchange Commission (SEC) accused Palafox of orchestrating the massive Ponzi scheme.