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.
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.
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
