A US federal judge in Virginia sentenced the chief executive of Praetorian Group International to 20 years in prison for running a $200 million cryptocurrency investment scheme that defrauded tens of thousands of investors.
According to to the Department of Justice Ramil Ventura Palafox, 61, a dual U.S.-Philippine citizen, was convicted of wire fraud and money laundering in connection with what prosecutors described as a Ponzi scheme that falsely promised daily profits on Bitcoin trading of up to 3%.
The United States Attorney’s Office for the Eastern District of Virginia said investors pumped more than $201 million into PGI between December 2019 and October 2021, including at least 8,198 Bitcoins (BTC) worth approximately $171.5 million at the time. According to prosecutors, the victims suffered losses of at least $62.7 million.
The ruling ends a criminal case brought by the Department of Justice and follows a parallel civil action by the Securities and Exchange Commission, marking one of the largest cryptocurrency fraud cases in recent years in terms of the number of investors and funds involved.
False trade claims and luxury spending
Court documents show that Palafox told investors that PGI was engaged in large-scale Bitcoin trading that could generate consistent daily profits.
Prosecutors, however, found that the company’s quotations were not at a level sufficient to ensure the promised profits. Instead, fresh investor funds were used to pay earlier participants.
Authorities said Palafox operated an online portal that falsely showed consistent profits, giving investors the impression that their accounts were growing. It also used a multi-level marketing structure, offering referral incentives to recruit fresh members.
The Justice Department found that Palafox spent millions of dollars of investor funds on personal expenses, including $3 million on luxury vehicles, more than $6 million on homes in Las Vegas and Los Angeles, and hundreds of thousands of dollars on penthouse apartments and high-end retail purchases.
Authorities said he also transferred at least $800,000 and 100 BTC to a family member.
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Civil prosecutions and international scope
The case began to unravel as regulators analyzed PGI’s trading claims and fund flows.
In April 2025, the Securities and Exchange Commission filed a civil complaint alleging that Palafox misrepresented PGI’s Bitcoin trading activities and used fresh investor money to pay earlier participants.
The complaint states that PGI promotes an artificial intelligence-based trading platform and guarantees daily profits despite the lack of trading operations capable of generating such profits.
Federal prosecutors in the Eastern District of Virginia later unsealed criminal charges accusing Palafox of wire fraud and money laundering stemming from the same conduct.
Authorities seized the company’s website in 2021 and related operations were halted in the UK, signaling cross-border enforcement scrutiny before the US criminal case got underway.
The Department of Justice said victims may be eligible for compensation and directed them to the U.S. Attorney’s Office website for information on filing a claim.
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