A US federal judge in Virginia sentenced the chief executive of Praetorian Group International to 20 years in prison for running a $200 million cryptocurrency investment scheme that defrauded tens of thousands of investors.
According to the Department of Justice, 61-year-old Ramil Ventura Palafox, a dual US and Philippine citizen, 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 US Attorney’s Office for the Eastern District of Virginia said investors poured over $201 million into PGI between December 2019 and October 2021, including at least 8,198 Bitcoin (BTC) valued at about $171.5 million at the time. According to prosecutors, victims suffered losses of at least $62.7 million.
The sentencing concludes the criminal case brought by the DOJ and follows a parallel civil action by the Securities and Exchange Commission, marking one of the larger crypto-related fraud cases in recent years by investor count and funds involved.
PGI founder Ramil Ventura Palafox. Source: PGI Global TradeFake trading claims and luxury spending
Court filings said Palafox told investors PGI was engaged in large-scale Bitcoin trading capable of generating consistent daily profits.
However, prosecutors said the company was not trading at a level sufficient to support the promised returns. Instead, new investor funds were used to pay earlier participants.
Authorities said Palafox operated an online portal that falsely displayed steady gains, giving investors the impression their accounts were growing. He also used a multilevel marketing structure, offering referral incentives to recruit new members.
The DOJ said Palafox spent millions in investor funds on personal expenses, including $3 million on luxury vehicles, over $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.
Related: Sam Bankman-Fried claims Biden DOJ silenced witnesses during FTX trial
Civil charges and international reach
The scheme began to unravel as regulators scrutinized PGI’s trading claims and fund flows.
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 money to pay earlier participants.
The complaint said PGI promoted an AI-powered trading platform and guaranteed daily returns despite lacking trading operations capable of generating those profits.
Federal prosecutors in the Eastern District of Virginia later unsealed criminal charges accusing Palafox of wire fraud and money laundering arising from the same conduct.
Authorities had seized the company’s website in 2021, and related operations were shut down in the United Kingdom, signaling cross-border enforcement scrutiny before the US criminal case advanced.
The DOJ said victims may be eligible for restitution and directed them to the US Attorney’s Office website for information on filing claims.
Magazine: Hong Kong stablecoins in Q1, BitConnect kidnapping arrests: Asia Express
Source: https://cointelegraph.com/news/pgi-ceo-20-year-sentence-200m-crypto-scheme?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
