The US Department of Justice announced that Ramil Ventura Palafox, chief executive of Praetorian Group International, has been sentenced to 20 years in prison for running a global Bitcoin investment fraud that raised about 200 million dollars from more than 90,000 investors.
Court filings state that Palafox promoted PGI as a Bitcoin trading company combined with a multi level marketing opportunity. He promised daily returns between 0.5 percent and 3 percent. In reality, the company was not generating such profits. Investor payouts were funded with deposits from new participants or recycled from existing victims.
Between December 2019 and October 2021, investors contributed more than 201 million dollars, including 30.3 million dollars in cash and over 8,000 BTC valued at roughly 171.5 million dollars at the time. Losses exceeded 62 million dollars. An online portal displayed fabricated gains to convince users their investments were secure.
Prosecutors revealed that Palafox spent millions on luxury vehicles, high end hotels, designer goods, and multiple homes in Las Vegas and Los Angeles. Authorities say victims may qualify for restitution. The SEC previously filed civil charges, and PGI’s UK branch was shut down by the High Court in 2022.
