PGI CEO Sentenced to 20 Years in Prison for Bitcoin Ponzi Scheme
On February 13, the U.S. Department of Justice announced a landmark case involving the CEO of Praetorian Group International (PGI), who was sentenced to 20 years in prison for orchestrating a $200 million Bitcoin Ponzi scheme. His actions defrauded more than 90,000 investors globally and resulted in substantial financial losses, leading to convictions for wire fraud and money laundering.
Ramil Ventura Palafox, 61, a dual citizen of the U.S. and the Philippines, served as Chairman and CEO of PGI. He falsely claimed that PGI engaged in Bitcoin trading, promising daily returns of 0.5% to 3%. However, PGI’s actual Bitcoin trading volume was far from sufficient to generate such returns, and the operation was ultimately exposed as a Ponzi scheme.
Between December 2019 and October 2021, at least 90,000 investors globally funneled over $201 million into PGI, including $30.295 million in fiat currency and 8,198 Bitcoins valued at approximately $171.498 million. As a result of Palafox’s actions, investors suffered losses totaling no less than $62.692 million.