Cryptocurrency Executive Receives Two-Decade Prison Term for $200M Bitcoin Fraud Operation
Ramil Palafox, who founded PGI, received a 20-year federal prison sentence after being convicted of orchestrating a Bitcoin-based Ponzi scheme that collected more than $200 million from investors during a two-year period spanning 2019 to 2021.
The chief executive officer of Praetorian Group International received a 20-year prison sentence from a US federal judge in Virginia for orchestrating a cryptocurrency investment fraud operation valued at $200 million that victimized tens of thousands of people.
The Department of Justice reported that Ramil Ventura Palafox, age 61, who holds citizenship in both the United States and the Philippines, faced conviction on charges of wire fraud and money laundering related to what government attorneys characterized as a Ponzi scheme that made fraudulent promises of daily profit returns reaching 3% through Bitcoin trading activities.
Between December 2019 and October 2021, investors deposited more than $201 million into PGI, which included no less than 8,198 Bitcoin (BTC) worth approximately $171.5 million during that period, according to the US Attorney's Office for the Eastern District of Virginia. Government prosecutors stated that victims experienced financial losses totaling at least $62.7 million.
This sentencing brings to a close the criminal prosecution initiated by the DOJ and comes after a companion civil lawsuit filed by the Securities and Exchange Commission, representing one of the more substantial cryptocurrency fraud cases in recent history based on both the number of investors affected and the volume of funds collected.
Fake trading claims and luxury spending
Documents filed with the court revealed that Palafox informed investors that PGI conducted substantial Bitcoin trading operations with the capacity to produce reliable daily returns.
Government prosecutors, however, maintained that the organization was not executing trades at volumes adequate to sustain the returns that had been promised to participants. Rather, capital from newly recruited investors was utilized to compensate those who had invested earlier.
Law enforcement officials reported that Palafox maintained an internet-based portal that fraudulently showed continuous profits, creating the illusion for investors that their holdings were experiencing growth. Additionally, he implemented a multilevel marketing framework, providing referral bonuses as incentives to attract additional members.
According to the DOJ, Palafox diverted millions of dollars in investor capital toward personal expenditures, which included $3 million allocated to luxury automobiles, more than $6 million spent on residential properties in Las Vegas and Los Angeles, along with hundreds of thousands of dollars on penthouse accommodations and premium retail acquisitions.
Law enforcement authorities indicated he also moved no less than $800,000 and 100 BTC to a relative.
Civil charges and international reach
The fraudulent operation started to collapse when regulatory agencies began examining PGI's trading assertions and the movement of funds.
During April 2025, the Securities and Exchange Commission submitted a civil legal complaint asserting that Palafox provided false representations regarding PGI's Bitcoin trading operations and utilized funds from new investors to compensate earlier participants.
Criminal charges were subsequently made public by federal prosecutors in the Eastern District of Virginia, charging Palafox with wire fraud and money laundering stemming from identical conduct.
The company's website had been confiscated by authorities during 2021, and associated business activities were terminated in the United Kingdom, demonstrating international enforcement attention prior to the advancement of the US criminal proceedings.
Victims may qualify for restitution payments, and the DOJ instructed them to visit the US Attorney's Office website for details on submitting claims.