Luxury Shopping and Deception: CEO’s Bitcoin Scam Leaves 90,000 Investors Out $62 Million

Ramil Ventura Palafox, who established and leads Praetorian Group International (PGI), has admitted guilt to wire fraud and money laundering in connection with a $200 million

Ponzi operation that deceived more than 90,000 investors worldwide. Palafox, holding dual citizenship in the United States and the Philippines, promoted PGI as a Bitcoin trading enterprise, falsely asserting it was engaged in high-frequency trading and promising investors daily profits ranging from 0.5% to 3%. In truth, PGI’s trades did not generate these returns, and Palafox instead used money from newer investors to pay earlier participants.

Running from December 2019 to October 2021, the scheme amassed over $201 million from investors, including $30.295 million in traditional currency and 8,198 Bitcoin, which was worth about $171.499 million. In total, investors suffered losses of at least $62.692 million. Palafox maintained a deceptive online platform that showed fictitious profits, making investors believe their investments were both safe and increasing in value.

In addition to misleading investors, Palafox diverted a large portion of the money for his own benefit. He used about $3 million to buy 20 luxury cars from brands like Porsche, Lamborghini,

, and McLaren, and spent $329,000 on upscale penthouse suites. He also directed $6 million toward purchasing property in Las Vegas and Los Angeles, and another $3 million on luxury goods, jewelry, and designer home décor from retailers such as Gucci, Cartier, and Rolex. Furthermore, Palafox transferred $800,000 in cash and 100 Bitcoin—valued at $3.3 million at that time—to a relative.

In his plea deal, Palafox has committed to reimbursing victims with $62.692 million in restitution. His sentencing is set for February 3, 2026, and he could be given a prison term of up to 40 years. However, federal sentencing often results in penalties below the maximum, as judges weigh factors including federal guidelines and the specifics of the crime. The prosecution was handled by Assistant U.S. Attorneys Jack Morgan, Zoe Bedell, and Annie Zanobini.

This case emphasizes the increasing dangers of Ponzi schemes within the cryptocurrency industry, especially those that use deceptive investment claims alongside multi-level marketing (MLM) tactics. Experts have called the Praetorian scheme a “classic Ponzi,” pointing out that its structure strengthened the illusion of legitimacy through recruitment bonuses and artificial returns. The incident highlights the importance of increased investor education and tighter regulatory oversight in a sector that is becoming more susceptible to fraud.