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A 60-year-old executive, Ramil Ventura Palafox, has pleaded guilty in U.S. federal court to orchestrating a crypto Ponzi scheme that defrauded over 90,000 global investors. Prosecutors said Palafox, a dual citizen of the United States and the Philippines, used his firm, Praetorian Group International (PGI), to lure victims with false promises of daily profits.
Between December 2019 and October 2021, PGI raised more than $201 million including $30.3 million in cash and over 8,000 bitcoin valued at roughly $171.5 million. According to the U.S. Department of Justice, investors were told their funds were being used for high-volume bitcoin trading. In reality, Palafox was recycling money from new investors to pay earlier ones, the hallmark of a crypto Ponzi scheme.
“Mr. Palafox presented himself as a legitimate investment leader but instead ran a massive Ponzi scheme that destroyed lives,” — Leonie M. Brinkema, U.S. District Judge, in court filings.
The SEC also filed civil charges in April, accusing Palafox and PGI Global of defrauding investors of nearly $198 million.
To sustain the illusion, Palafox built an investor portal that falsely showed account balances growing by 0.5% to 3% daily. These fabricated returns convinced participants that their money was safe while Palafox siphoned millions for personal luxuries.
Court records reveal he spent nearly $3 million on 20 high-end cars, including Lamborghini, Ferrari, Porsche, and Bentley models. He also purchased four luxury homes in Las Vegas and Los Angeles worth more than $6 million, splurged $329,000 on penthouse hotel stays, and spent another $3 million at Cartier, Rolex, Gucci, and Hermès.
In addition, prosecutors said Palafox diverted $800,000 in cash and 100 bitcoin then worth $3.3 million to a family member. Despite raising over $201 million, losses for victims totaled at least $62.7 million once the crypto Ponzi scheme collapsed in late 2021 and PGI’s website was seized.
“Palafox’s victims believed they were investing in cutting-edge bitcoin trading,” — SEC spokesperson, in a statement, “but in reality, their money was financing his Lamborghinis and penthouses.”
Under his plea deal, Palafox agreed to pay back the $62.7 million in restitution to victims. Updates on repayment will be available via the Justice Department’s victim portal.
Sentencing is scheduled for February 3, 2026, before Judge Brinkema. Palafox faces up to 40 years in prison for wire fraud and money laundering, although sentencing guidelines suggest a shorter term.
Palafox’s conviction adds to a long list of recent crypto Ponzi scheme cases, highlighting the risks faced by unwary investors.
Earlier this month, Nathan Fuller, owner of Privvy Investments, was denied bankruptcy protection after a Texas court ruled he ran a Ponzi scheme that defrauded clients of $12.5 million. In another case, co-writer and actor Vladimir Okhotnikov was tied to Forsage, a $340 million crypto Ponzi scheme that drew U.S. charges.
The CFTC also secured a $228.6 million judgment against pastor Eddy Alexandre, who defrauded 25,000 investors through his EminiFX scheme. Alexandre promised 5–10% weekly returns with a fake “robo-advisor” system and is now serving nine years in prison.
Experts say the rise of crypto investment scams highlights the need for tighter global oversight.
“The Palafox case is another reminder that crypto Ponzi schemes thrive on hype and lack of due diligence,” — John Reed Stark, former SEC enforcement attorney, in an interview with Bloomberg.
For crypto investors, the Palafox case underscores the dangers of chasing unrealistic daily returns. Authorities stress the importance of verifying registrations with regulators, avoiding schemes that guarantee profits, and consulting official resources like the SEC investor alerts.
As the sentencing looms, the case of Ramil Ventura Palafox remains one of the most prominent crypto Ponzi scheme convictions in recent years, serving both as a cautionary tale and a call for stronger safeguards in digital asset markets.
