PGI Founder Ramil Palafox Gets 20 Years for $200M Bitcoin Ponzi
A U.S. federal judge in Virginia sentenced the chief executive of Praetorian Group International to 20 years in prison for operating a $200 million cryptocurrency investment scheme that defrauded tens of thousands of investors between 2019 and 2021.
According to the Department of Justice, 61-year-old Ramil Ventura Palafox, a dual citizen of the United States and the Philippines, was convicted of wire fraud and money laundering for what prosecutors described as a Ponzi scheme that falsely promised daily returns of up to 3% from Bitcoin trading.
The U.S. Attorney’s Office for the Eastern District of Virginia said investors sent more than $201 million to PGI from December 2019 through October 2021, including at least 8,198 Bitcoin (BTC) valued at approximately $171.5 million at the time. Prosecutors said victims suffered losses of at least $62.7 million.
The sentencing concludes the DOJ’s criminal case and follows a parallel civil action brought by the Securities and Exchange Commission, representing one of the larger crypto-related fraud matters in recent years by investor count and funds involved.
False trading claims and luxury expenditures
Court filings state that Palafox told investors PGI conducted large-scale Bitcoin trading capable of generating steady daily profits. Prosecutors said the company’s trading activity was insufficient to support the promised returns and that funds from new investors were used to pay earlier participants.
Authorities said Palafox ran an online portal that falsely showed consistent gains, creating the impression that account balances were increasing. He also used a multilevel marketing approach, offering referral incentives to attract new investors.
The DOJ said Palafox spent millions of investor funds on personal expenses, including $3 million on luxury vehicles, more than $6 million on homes in Las Vegas and Los Angeles, and hundreds of thousands of dollars on penthouse suites and high-end retail purchases. Authorities said he also transferred at least $800,000 and 100 BTC to a family member.
Civil charges and international scope
The scheme began to unravel as regulators examined PGI’s trading representations and fund movements. In April 2025, the Securities and Exchange Commission filed a civil complaint alleging that Palafox misrepresented PGI’s Bitcoin trading activity and used new investor funds to pay earlier participants.
The complaint said PGI marketed an AI-powered trading platform and guaranteed daily returns despite lacking trading operations capable of producing those profits. Federal prosecutors in the Eastern District of Virginia later unsealed criminal charges of wire fraud and money laundering stemming from the same conduct.
Authorities had seized the company’s website in 2021, and related operations were shut down in the United Kingdom, indicating cross-border enforcement activity before the U.S. criminal case progressed.
The DOJ said victims may be eligible for restitution and directed them to the U.S. Attorney’s Office website for information on submitting claims.
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