PGI CEO Pleads Guilty in $200 Million Bitcoin Ponzi Scheme
Ramil Ventura Palafox, CEO of Praetorian Group International (PGI), pleaded guilty to running a $200 million Bitcoin Ponzi scheme. He faces charges of wire fraud and money laundering. Palafox admitted to defrauding over 90,000 investors worldwide. The scheme caused losses exceeding $62 million.
According to the Department of Justice press release, Palafox falsely promoted PGI as a Bitcoin trading firm from December 2019 to October 2021. He promised investors daily returns between 0.5% and 3%. In reality, PGI did not conduct any legitimate trading.
Palafox used over $201 million from new investors to pay returns to earlier investors, a classic Ponzi scheme method. Investigators found he misused at least $6 million for personal expenses. These included buying 20 luxury cars, expensive clothing, and spending on luxury homes and hotels. He also transferred about $800,000 and 100 Bitcoin, worth around $3.3 million at the time, to a family member.
As part of his plea deal, Palafox agreed to pay $62.69 million in restitution to victims. He faces up to 40 years in prison. Sentencing is set for February 3, 2026.
Ongoing Risks of Cryptocurrency Fraud
This case highlights the ongoing threat of fraud in the cryptocurrency sector. Although this involved one individual, it reflects a wider pattern of scams. Investors must remain vigilant and perform thorough due diligence.
Recently, the SEC and Nasdaq tightened regulations amid concerns over IPO fraud. The Commodity Futures Trading Commission (CFTC) also ordered the former CEO of Voyager Digital to pay $750,000 in a separate fraud case. These actions show the growing regulatory focus on crypto fraud.
Investor Caution Remains Crucial
- Fraud cases in crypto continue to rise.
- Regulators are increasing oversight and penalties.
- Investors should research thoroughly before investing.
