A US federal decide in Virginia sentenced the chief government of Praetorian Group Worldwide to twenty years in jail for working a $200 million cryptocurrency funding scheme that defrauded tens of hundreds of traders.
In accordance to the Division of Justice, 61-year-old Ramil Ventura Palafox, a twin US and Philippine citizen, was convicted of wire fraud and cash laundering for what prosecutors described as a Ponzi scheme that falsely promised every day returns of as much as 3% from Bitcoin buying and selling.
The US Legal professional’s Workplace for the Jap District of Virginia stated traders poured over $201 million into PGI between December 2019 and October 2021, together with no less than 8,198 Bitcoin (BTC) valued at about $171.5 million on the time. In keeping with prosecutors, victims suffered losses of no less than $62.7 million.
The sentencing concludes the felony case introduced by the DOJ and follows a parallel civil motion by the Securities and Trade Fee, marking one of many bigger crypto-related fraud circumstances lately by investor rely and funds concerned.
Pretend buying and selling claims and luxurious spending
Court docket filings stated Palafox instructed traders PGI was engaged in large-scale Bitcoin buying and selling able to producing constant every day income.
Nonetheless, prosecutors stated the corporate was not buying and selling at a stage enough to assist the promised returns. As a substitute, new investor funds had been used to pay earlier contributors.
Authorities stated Palafox operated a web based portal that falsely displayed regular good points, giving traders the impression their accounts had been rising. He additionally used a multilevel advertising construction, providing referral incentives to recruit new members.
The DOJ stated Palafox spent hundreds of thousands in investor funds on private bills, together with $3 million on luxurious autos, over $6 million on houses in Las Vegas and Los Angeles, and tons of of hundreds of {dollars} on penthouse suites and high-end retail purchases.
Authorities stated he additionally transferred no less than $800,000 and 100 BTC to a member of the family.
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Civil expenses and worldwide attain
The scheme started to unravel as regulators scrutinized PGI’s buying and selling claims and fund flows.
In April 2025, the Securities and Trade Fee filed a civil criticism alleging that Palafox misrepresented PGI’s Bitcoin buying and selling exercise and used new investor cash to pay earlier contributors.
The criticism stated PGI promoted an AI-powered buying and selling platform and assured every day returns regardless of missing buying and selling operations able to producing these income.
Federal prosecutors within the Jap District of Virginia later unsealed felony expenses accusing Palafox of wire fraud and cash laundering arising from the identical conduct.
Authorities had seized the corporate’s web site in 2021, and associated operations had been shut down in the UK, signaling cross-border enforcement scrutiny earlier than the US felony case superior.
The DOJ stated victims could also be eligible for restitution and directed them to the US Legal professional’s Workplace web site for info on submitting claims.
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