Bitcoin Scam: Court Hands Man 20-Year Sentence Over $200M Ponzi Scheme
A US courtroom has sentenced the CEO of Bitcoin buying and selling agency, Praetorian Group International (PGI), to twenty years in jail after convicting him of working a large-scale Ponzi scheme. The fraudulent funding platform, which falsely claimed to generate income by means of cryptocurrency buying and selling, misappropriated substantial capital from tens of hundreds of buyers globally.
Over 8,000 Bitcoin In Palafox Scam Operation – DOJ
According to a recent release by the DOJ, Ramil Ventura Palafox, a 61-year-old twin citizen of the United States and the Philippines, orchestrated a classy fraudulent operation by means of his registered buying and selling firm, PGI. The DOJ notes clarify that, as chairman, chief govt officer, and lead promoter, Palafox marketed PGI as a Bitcoin buying and selling agency able to producing every day returns starting from 0.5% to three%. However, investigations revealed that the corporate was not conducting reliable bitcoin buying and selling at a scale that would help such income.
The scheme reportedly operated between December 2019 and October 2021. During this era, PGI attracted at the very least 90,000 buyers globally who collectively invested greater than $201 million into the platform. This included over $30 million contributed in fiat foreign money and roughly 8,198 bitcoin valued at greater than $171 million on the time of funding. Despite these important inflows, authorities found that investor payouts have been largely funded utilizing cash obtained from newer members moderately than real buying and selling income.
To maintain investor confidence, Palafox took one other drastic step in establishing an internet portal that displayed fabricated funding efficiency information. Between 2020 and 2021, the portal constantly confirmed growing account balances, convincing buyers that their funds have been safe and producing dependable returns.
Meanwhile, investigations additionally uncovered in depth misuse of investor funds for private luxurious expenditures. Palafox allegedly spent roughly $3 million buying 20 high-end automobiles, whereas splashing equal quantities on equipment corresponding to jewellery, clothes, watches, and so on., amongst different types of misappropriation. The American-Filipino was discovered responsible of wire fraud and cash laundering and is anticipated to spend the subsequent 20 years in jail.
FBI Explores Potential Restitution For PGI Victims
In different developments, the Federal Bureau of Investigation’s Washington Field Office is currently working to determine people who suffered monetary losses by means of investments in PGI between 2020 and 2021.
Following an preliminary conviction of Palafox in September 2025, the federal legislation brokers have inspired people who consider they might be eligible for restitution funds or in want of sufferer providers to succeed in out and fill the related kind. Notably, complete losses related to the Bitcoin Ponzi scheme are presently estimated at $62.7 million.
