$200 Million Bitcoin Fraud: Crypto Firm CEO Pleads Guilty - Crypto Economy

TL;DR

• Ramil Ventura Palafox pleaded guilty in the U.S. to fraud and money laundering over a $200M Ponzi scheme that defrauded more than 90,000 investors.
• Between 2019 and 2021, PGI raised more than $201M in cash and bitcoin, but left investors with at least $62.7M in losses after faking profits on its portal.
• Palafox spent millions on luxury cars, properties, and jewelry, and is set to be sentenced on February 3, 2026, facing up to 40 years in prison.

Ramil Ventura Palafox, 60, pleaded guilty in the United States to wire fraud and money laundering for running a Ponzi scheme of more than $200 million through Praetorian Group International (PGI), a supposed bitcoin trading and multi-level marketing firm that deceived over 90,000 investors worldwide.


What Was the Fraud About?

According to court documents, Palafox, a citizen of both the United States and the Philippines, was the owner, chairman, CEO, and chief promoter of PGI. He claimed the company was engaged in large-scale bitcoin trading and promised daily returns ranging from 0.5% to 3%. In reality, PGI had no trading activity capable of generating those profits. Investor payouts came either from their own funds or from new deposits, in a classic pyramid scheme.

Between December 2019 and October 2021, more than 90,000 people deposited over $201 million into PGI, including about $30.3 million in cash and 8,198 bitcoins valued at roughly $171.5 million. The scheme caused minimum estimated losses of $62.7 million. To strengthen the illusion of security, Palafox created an online portal that displayed steady gains, reinforcing the false appearance of profitability.


Palafox’s Spending

Authorities reported that part of the money was used for personal luxuries as well as to promote the fraudulent scheme. Palafox spent approximately $3 million on 20 high-end cars — including Porsche, Lamborghini, Ferrari, McLaren, and Bentley — and more than $6 million on homes in Las Vegas and Los Angeles. He also paid $329,000 for luxury hotel penthouses and spent another $3 million on designer goods such as watches, jewelry, clothing, and furniture from brands like Gucci, Cartier, Rolex, Hermès, Versace, and Valentino. In addition, he transferred at least $800,000 in cash and 100 bitcoins, then worth about $3.3 million, to a family member.


Sentencing is scheduled for February 3, 2026. Palafox faces up to 40 years in prison and has agreed to repay around $62.7 million in restitution. However, federal sentences are typically lower than the statutory maximum, as the judge must weigh the U.S. Sentencing Guidelines and other factors before determining the final punishment