Crypto CEO Jailed 20 Years Over $200M Bitcoin Ponzi Case

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In the vast, damp cosmos of finance, a U.S. federal court has handed down a sentence that sounds suspiciously like a bad plot from a dodgy soap opera: 20 years of prison time for the chief executive of a crypto trading and multi-level marketing firm, convicted of orchestrating a Bitcoin-based Ponzi scheme that swindled tens of thousands of investors worldwide. If the universe had a sense of humor, it would be laughing at the idea of daily returns being both promised and never delivered, all at once.

The cosmos, it would seem, enjoys a good arithmetic riddle. The scheme promised daily returns of up to 3% through supposed crypto trading, a number that would make even the most optimistic calculator consider retirement and buy a small island. Not that anything about this story resembles a fair game-unless the game is called “Find the Money That Isn’t There.”

Summary

  • Ramil Ventura Palafox, CEO of Praetorian Group International (PGI), was sentenced to 20 years for running a $200 million Bitcoin Ponzi scheme.
  • Prosecutors said the scheme defrauded more than 90,000 investors worldwide, promising daily returns of up to 3% through supposed crypto trading.
  • The U.S. Department of Justice said investor funds were misused for personal expenses, with no legitimate trading activity backing the returns.

Bitcoin Ponzi scheme CEO sentenced to 20 years

Ramil Ventura Palafox, 61, former CEO and Chairman of Praetorian Group International (PGI), received the sentence Thursday after being convicted on multiple federal charges, including wire fraud and money laundering. The sentence lands with the quiet inevitability of a vending machine that has decided to miscount your change and still be smug about it.

According to court documents, Palafox used PGI to lure more than 90,000 investors into a purported Bitcoin (BTC) trading program that promised daily returns of 0.5% to 3%.

Prosecutors said the program never engaged in genuine trading, instead, returns were paid with funds from new investors, a classic Bitcoin Ponzi scheme.

Victims from around the world collectively invested more than $200 million, with documented losses exceeding tens of millions for many individuals.

Government filings show Palafox made lavish personal purchases with investor money, which reportedly included luxury cars, high-end designer goods and real estate. Earlier reports in the case revealed that millions flowed into personal expenses rather than investment activity, exacerbating investors’ losses.

“He spent approximately $3 million on 20 luxury vehicles, including automobiles by Porsche, Lamborghini, McClaren, Ferrari, BMW, Bentley, and others. Palafox spent approximately $329,000 on penthouse suites at a luxury hotel chain and purchased four homes in Las Vegas and Los Angeles worth more than $6 million. Palafox spent another $3 million of investors’ money to buy clothing, watches, jewelry, and home furnishings at luxury retailers, including Louboutin, Neiman Marcus, Gucci, Versace, Ferragamo, Valentino, Cartier, Rolex, and Hermes, among others,” the DoJ statement said.

Palafox initially pleaded guilty in September 2025 to fraud and money laundering charges, acknowledging his role in the Bitcoin Ponzi scheme that operated between December 2019 and October 2021.

The FBI’s Washington Field Office and IRS Criminal Investigation Division assisted in the case, and some victims have already been granted restitution orders. Efforts continue to track down remaining assets to repay those defrauded.

In the end, the universe resumes its quiet hum, reminding us that even in the grand ledger of the cosmos, some numbers are past due-and apparently, someone forgot to collect.

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2026-02-13 11:44