PGI’s CEO spent tens of millions on luxurious vehicles, houses, inns, designer clothes, jewellery, and watches utilizing investor funds.
The US Division of Justice introduced that Ramil Ventura Palafox, the CEO of Praetorian Group Worldwide (PGI), was sentenced to twenty years in jail.
Prosecutors said that Palafox operated a $200 million Bitcoin-based Ponzi scheme that defrauded greater than 90,000 traders internationally.
Bitcoin Fraud Case
In keeping with courtroom paperwork, Palafox, the 61-year-old twin citizen of america and the Philippines, owned and managed PGI and served as its chairman, chief govt officer, and chief promoter. Prosecutors stated Palafox falsely claimed that PGI was engaged in Bitcoin buying and selling and marketed the agency as a multi-level advertising and marketing funding alternative. He promised traders every day returns starting from 0.5% to three%.
In actuality, PGI was not buying and selling Bitcoin at a scale able to producing these returns, and investor payouts had been funded utilizing victims’ personal deposits or cash from new traders. From December 2019 by way of October 2021, at the very least 90,000 traders invested greater than $201 million in PGI, together with roughly $30.3 million in fiat foreign money and at the very least 8,198 BTC, value round $171.5 million on the time.
Because of the scheme, investor losses rose to over $62 million. Courtroom information reveal that Palafox created a web based PGI portal that allowed traders to trace what he represented as their funding efficiency. Between 2020 and 2021, the web site constantly and fraudulently displayed positive aspects, which led victims to consider their investments had been worthwhile and safe.
Luxurious Automobiles, Mansions, and Lies
Palafox spent roughly $3 million on 20 luxurious autos, together with fashions from Porsche, Lamborghini, McLaren, Ferrari, BMW, and Bentley. He additionally spent about $329,000 on penthouse suites at a luxurious resort chain and bought 4 houses in Las Vegas and Los Angeles, estimated to be greater than $6 million.
Further spending included roughly $3 million on luxurious clothes, watches, jewellery, and residential furnishings from retailers similar to Louboutin, Neiman Marcus, Gucci, Versace, Ferragamo, Valentino, Cartier, Rolex, and Hermès. Prosecutors stated Palafox additionally transferred at the very least $800,000 in fiat foreign money and 100 BTC, which was then equal to $3.3 million, to a member of the family.
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The Justice Division stated PGI victims could also be eligible for restitution.
Individually, PGI World’s UK entity was shut down by the UK Excessive Courtroom again in 2022. In April 2025, the US Securities and Alternate Fee (SEC) charged Palafox with orchestrating the large Ponzi scheme.
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