CEO Pleads Guilty in ‘$200M Bitcoin Fraud’ That Duped 90,000 Investors With Fake 3% Daily Returns

Ramil Ventura Palafox, the chief executive of a bitcoin investment and multi-level marketing firm, has pleaded guilty to wire fraud and money laundering. According to federal authorities, he orchestrated a Ponzi scheme that defrauded more than 90,000 global investors.

The 60-year-old dual citizen of the United States and the Philippines admitted in federal court that he used Praetorian Group International (PGI) to lure investors with false promises of daily profits.

Between December 2019 and October 2021, PGI raised more than $201 million, including $30.3 million in cash and over 8,000 bitcoin valued at approximately $171.5 million.

In April, the Security and Exchange Commission (SEC) charged Palafox and PGI Global for defrauding investors of $198 million in a crypto and forex Ponzi scheme.

The SEC alleged that he misused funds for luxury purchases and paying other investors until the company collapsed. Notably, PGI’s website was seized in 2021, shutting down its UK operations.

The SEC charged Ramil Palafox and his company PGI Global on Tuesday for running a nearly $200 million crypto scheme.#RamilPalafox #TheSEChttps://t.co/PCRxfNUv4u

Palafox claimed that PGI was engaged in high-volume bitcoin trading and promised investors daily returns of 0.5 to 3%. According to prosecutors, PGI did not operate at a level capable of delivering such profits. Instead, Palafox used funds from new investors to pay earlier ones, the hallmark of a Ponzi scheme.

To keep the scheme running, Palafox launched an investor portal that displayed fabricated account growth. The system showed participants their investments were gaining value, reinforcing the illusion of security and profitability.

Court documents show that Palafox diverted millions of dollars in investor funds for personal use. He spent about $3 million on 20 luxury vehicles, including Lamborghini, Ferrari, Porsche, McLaren, Bentley, and BMW models.

He also purchased four homes in Las Vegas and Los Angeles worth more than $6 million, paid $329,000 for penthouse hotel stays, and spent another $3 million on clothing, watches, jewelry, and furnishings from high-end retailers such as Cartier, Rolex, Gucci, and Hermes.

Palafox also transferred at least $800,000 in cash and 100 bitcoin, then worth $3.3 million, to a family member.

Although PGI raised more than $201 million, prosecutors said victims collectively lost at least $62.7 million. Many investors were left without access to their funds after the scheme collapsed in late 2021.

As part of his plea agreement, Palafox has now agreed to pay the $62.7 million in restitution to victims. Victims are expected to check for updates on the Justice Department’s official website.

In addition, Palafox will be sentenced on February 3, 2026, before the U.S. District Judge Leonie M. Brinkema. He faces a maximum of 40 years in prison but is expected to receive less under federal sentencing guidelines.

Earlier this month, Nathan Fuller, owner of Privvy Investments, was denied bankruptcy protection after a Texas court ruled he ran a Ponzi scheme, hid assets, and lied under oath. The U.S. Trustee Program secured a default judgment blocking his bid to erase $12.5 million in debts, leaving him personally liable.

Also this month, Kevin Spacey’s new film, Holiguards Saga—The Portal of Force, is linked to controversy as co-writer and actor Vladimir Okhotnikov faces U.S. charges over a $340 million crypto Ponzi scheme tied to Forsage.

Meanwhile, the CFTC secured a $228.6 million judgment against pastor Eddy Alexandre, who defrauded 25,000 investors of $262 million through his crypto Ponzi scheme EminiFX. Similar to Palafox, he promised 5–10% weekly returns using a fake “robo-advisor” system and is already serving nine years for commodities fraud.

CFTC wins $228M judgment against pastor who ran crypto Ponzi promising 5-10% weekly returns, defrauding 25,000 investors.#Ponzi #Cryptohttps://t.co/2eLsOeMuMg

The lists of crypto Ponzi schemes are endless. In August, Estonians Sergei Potapenko and Ivan Turõgin were sentenced to time served for the $577 million HashFlare Ponzi scheme, ordered to pay fines, perform community service, and forfeit $450 million in assets.

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