Praetorian Group CEO admits $200M Bitcoin fraud
Ramil Ventura Palafox, CEO of Praetorian Group International (PGI), pleaded guilty in Virginia to fraud and money laundering charges linked to a $200 million Bitcoin Ponzi scheme that defrauded at least 90,000 investors.
Prosecutors said Palafox solicited more than $201 million between 2019 and 2021 by promising daily returns of up to 3%, but instead used new deposits to pay earlier investors and fund personal expenses.
Palafox, 60, a dual U.S. and Philippine citizen, ran PGI from December 2019 to October 2021. During that period, investors contributed over $30 million in fiat currency and more than 8,100 Bitcoin, then valued at $171 million. Court filings show losses of at least $62.7 million.
The Department of Justice revealed that Palafox spent millions of investor funds on personal purchases, including 20 cars worth $3 million, homes in Las Vegas and Los Angeles worth more than $6 million, and hundreds of thousands on jewelry and designer goods. He also transferred at least $800,000 in cash and 100 BTC to a family member.
Palafox, 60, a dual U.S. and Philippine citizen, ran PGI from December 2019 to October 2021. During that period, investors contributed over $30 million in fiat currency and more than 8,100 Bitcoin, then valued at $171 million. Court filings show losses of at least $62.7 million.
The Department of Justice revealed that Palafox spent millions of investor funds on personal purchases, including 20 cars worth $3 million, homes in Las Vegas and Los Angeles worth more than $6 million, and hundreds of thousands on jewelry and designer goods. He also transferred at least $800,000 in cash and 100 BTC to a family member.
PGI operated an online portal that displayed fictitious gains and fraudulent balances. Prosecutors said the false information was central to sustaining the scheme until withdrawal demands triggered its collapse in October 2021.
The case was prosecuted by the U.S. Attorney's Office for the Eastern District of Virginia, with the FBI and IRS Criminal Investigation involved in the investigation. Palafox faces up to 40 years in prison, though actual sentences may be lower under federal sentencing guidelines.
Palafox is scheduled for sentencing on February 3, 2026, and has agreed to pay $62.7 million in restitution to victims. The guilty plea covers charges of conspiracy to commit wire fraud and conspiracy to commit money laundering.
The scheme attracted investors primarily through online marketing that promised artificial intelligence-powered Bitcoin arbitrage trading. Instead of legitimate trading, PGI operated as a pyramid structure where early investors were paid with funds from new participants.
Federal investigators tracked the movement of investor funds through cryptocurrency exchanges and traditional banking systems. The case represents one of several major cryptocurrency fraud prosecutions pursued by federal authorities in recent years.
The case was prosecuted by the U.S. Attorney's Office for the Eastern District of Virginia, with the FBI and IRS Criminal Investigation involved in the investigation. Palafox faces up to 40 years in prison, though actual sentences may be lower under federal sentencing guidelines.
Palafox is scheduled for sentencing on February 3, 2026, and has agreed to pay $62.7 million in restitution to victims. The guilty plea covers charges of conspiracy to commit wire fraud and conspiracy to commit money laundering.
The scheme attracted investors primarily through online marketing that promised artificial intelligence-powered Bitcoin arbitrage trading. Instead of legitimate trading, PGI operated as a pyramid structure where early investors were paid with funds from new participants.
Federal investigators tracked the movement of investor funds through cryptocurrency exchanges and traditional banking systems. The case represents one of several major cryptocurrency fraud prosecutions pursued by federal authorities in recent years.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
