The CEO of Praetorian Group International (PGI), Ramil Ventura Palafox, has officially pleaded guilty to large-scale fraud and money laundering related to the creation of a Bitcoin pyramid scheme. More than 90,000 investors from various countries fell victim to this scheme, losing over $62.6 million.
This is reported by Business • Media
How the PGI Cryptocurrency Pyramid Worked
According to the investigation, 60-year-old Palafox, a citizen of the United States and the Philippines, managed PGI and actively promoted its investment products. He convinced potential investors that the company was engaged in professional Bitcoin trading and guaranteed daily profits ranging from 0.5% to 3%. In reality, PGI did not conduct the claimed operations, and payments to participants were made from the funds of new investors — which corresponds to a classic Ponzi scheme.
“From December 2019 to October 2021, over 90,000 investors worldwide invested more than $201 million in PGI, including $30.2 million in fiat and at least 8,198 BTC worth $171.5 million,” the court documents state.
To build trust, Palafox organized a special PGI website where investors could see falsified statistics on the profitability of their investments. Law enforcement noted that this portal systematically displayed increasing investments, misleading people and making them believe in the stability and safety of their investments.
Fraudulent Expenditures and the Case’s Future
Investigators found that Palafox spent part of the raised funds for personal use. In particular, he purchased 20 luxury cars from brands such as Porsche, Lamborghini, McLaren, Ferrari, Bentley, and others for a total of $3 million, spent $329,000 on penthouses in hotel complexes, over $6 million on real estate in Las Vegas and Los Angeles, and $3 million on branded clothing, jewelry, and accessories from brands like Gucci, Versace, Cartier, Rolex, and Hermes. Additionally, he transferred over $800,000 in fiat and about 100 BTC (then equivalent to $3.3 million) to a family member’s account.
Palafox’s sentencing is scheduled for February 3, 2026. He faces up to 40 years in prison. Furthermore, he has agreed to pay restitution of $62.7 million.
“Actual sentences for federal crimes are typically lower than the maximum penalties,” the prosecutor’s office clarified.
In August 2024, the U.S. Securities and Exchange Commission brought similar charges against Jonathan and Tanner Adams, as well as the companies GCZ Global LLC and Triten Financial Group LLC for organizing a $60 million cryptocurrency Ponzi scheme. In October of the same year, a federal court in Las Vegas sentenced a former attorney involved in creating a $15 million crypto pyramid.