PGI CEO Pleads Guilty to $200 Million Cryptocurrency Ponzi Scheme
Date: 2025-09-19 Author: Gabriel Deangelo Categories: BUSINESS
Praetorian Group International (PGI) CEO Ramil Ventura Palafox has formally pleaded guilty to fraud and money laundering. The case is being heard in the Eastern District of Virginia. According to investigators, from late 2019 to the fall of 2021, he managed to attract more than 90,000 investors from various countries, raking in over $201 million, including approximately 8,100 BTC. Potential losses to investors are estimated at at least $62.7 million.
Operating Scheme and Fictitious Profits
PGI promised its clients returns of 0.5% to 3% daily, citing "bitcoin arbitrage" and the use of complex trading algorithms. In reality, the project turned out to be a classic Ponzi scheme: payments were made through new investments, not actual trading. To bolster trust, Palafox presented fictitious profit reports and fake balances on the PGI online platform.
Personal Luxury Spending
The investigation revealed that a significant portion of the funds raised was used to satisfy Palafox's personal ambitions. He purchased approximately twenty luxury cars worth a total of $3 million, including a Ferrari, Lamborghini, and Bentley. More than $6 million was used to purchase homes in Las Vegas and Los Angeles, as well as penthouses in luxury hotels. He also spent hundreds of thousands of dollars on luxury items, from Rolex and Cartier watches to Gucci and Hermès accessories. Palafox transferred approximately 100 BTC, equivalent to $3.3 million, to his relatives.
A Ponzi Scheme Disguised as Crypto Trading
Experts note that PGI replicated a well-known scam typical of projects like BitConnect, PlusToken, and OneCoin. All of these projects relied on luring new participants and promising inflated returns. While the scale of PGI's scam was smaller than high-profile cases like FTX or Mt. Gox, its model fully met the classic hallmarks of a crypto Ponzi scheme.
Litigation Prospects
Palafox agreed to pay $62.7 million in damages, but not all investors will be able to recover their investments. His sentencing is scheduled for February 3, 2026. The maximum sentence he faces is up to 40 years in prison, although his actual sentence is likely to be less.
The PGI story once again highlights the vulnerability of the cryptocurrency market to scammers who exploit investors' trust and promises of quick profits.
