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A U.S. federal court sentenced Ramil Ventira Palafox, who was the founder and former CEO of Praetorian Group International (PGI), to 20 years in prison for runningA U.S. federal court sentenced Ramil Ventira Palafox, who was the founder and former CEO of Praetorian Group International (PGI), to 20 years in prison for running

Bitcoin Ponzi Scheme CEO Sentenced to 20 Years, DOJ Says

Author: Thenewscrypto

Source: Thenewscrypto

2026/02/13 21:22

2 min read

U$0.001198-0.08%

The CEO gets 20 years in prison for running a fake Bitcoin investment scheme.
Over 90,000 people lost $200 million while investor money funded luxury spending.

A U.S. federal court sentenced Ramil Ventira Palafox, who was the founder and former CEO of Praetorian Group International (PGI), to 20 years in prison for running a bitcoin-based cryptocurrency Ponzi scheme that defrauded tens of thousands of investors around the world.

What happened

According to the U.S. DOJ, PGI marked itself as a high-tech trading company that promised investors daily profits ranging from 0.5% to 3%. But the investigators concluded that no real trading activity had taken place, and the money from the new users was used to pay for the earlier investors, and this structure matched the Ponzi scheme structure. Authorities estimated more than 90,000 people sent money into the program, which is worth around $200 million.

Court filings described that invested funds were diverted to the Palafox’s personal life, which includes millions of dollars on luxury vehicles and hundreds of thousands on high-end hotel penthouses with several homes in Las Vegas and Los Angeles. Investigators from the Federal Bureau of Investigation and the Internal Revenue Service helped to trace the money moved.

In September 2025, Palafox pleaded guilty to wire fraud and money laundering. Authorities have begun issuing restitution orders to victims, and efforts are ongoing to locate additional assets. However, officials have warned that full repayment is rarely possible. This case shows that guaranteed high returns will draw scrutiny, and multi-level marketing around crypto can mask fraud.

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