Ramil Ventura Palafox, a dual US‑Philippine citizen and chief executive of Praetorian Group International (PGI), pleaded guilty on 16 Sept 2025 to wire‑fraud and money‑laundering charges, according to a press release from the US Department of Justice.
Justice Department Busts Ponzi Scheme Disguised as Bitcoin Trading
18 September 2025 - 16:33 CEST
Palafox served as PGI’s chairman, chief executive and chief promoter, using his position to build credibility while simultaneously defrauding clients. Court documents say he falsely marketed PGI as a bitcoin‑trading and multi‑level‑marketing firm, promising investors daily returns.
From Dec 2019 to Oct 2021 more than 90,000 individuals invested $201mn in the form of cash and personal Bitcoin savings.
PGI never generated genuine returns. Instead of trading on a scale capable of delivering the promised profits he used deposits to pay early investors, and himself.
Lavish spending and misrepresentations
PGI maintained an online portal that falsely showed account growth, misleading investors into believing that their portfolios were generating profits, according to the Justice Department.
Palafox then diverted funds deposited for personal use, which included about $3mn for luxury vehicles, $329,000 on hotel penthouse suites, four homes worth over $6mn and $3mn on luxury goods.
Pending Sentencing
Palafox will face sentencing on 3 Feb 2026. He may serve up to 40 years in prison and has agreed to pay $62.7mn in restitution. US Attorney Erik S. Siebert announced the plea with FBI and IRS officials.
According to the blockchain analytics firm Chainalysis, approximately $2.17bn in digital assets have been stolen from investors through hacking, fraud, and physical violence worldwide as of 17 Jul.
