PGI Global CEO handed 20-year sentence for $200 million bitcoin, forex Ponzi scheme

The CEO of Praetorian Group International (PGI) was sentenced to 20 years in prison in the U.S. for running a global Ponzi scheme that falsely claimed to invest in bitcoin and foreign exchange trading.

Ramil Ventura Palafox, 61, promised daily returns of up to 3%, misleading more than 90,000 investors and draining over $62.7 million in funds, according to a Thursday statement from the U.S. Attorney's Office for the Eastern District of Virginia.

PGI collected more than $201 million from investors between late 2019 and 2021, including over 8,000 bitcoin BTC$66,969.56, according to court records. Instead of investing the money, prosecutors said Palafox used new investor funds to pay old ones while siphoning millions for himself.

To keep the illusion going, Palafox built an online portal where investors could track their supposed profits, with numbers that were entirely fabricated.

In reality, Palafox was buying Lamborghinis, luxury homes in Las Vegas and Los Angeles and penthouse suites at high-end hotels. Prosecutors say he spent $3 million on luxury cars and another $3 million on designer clothing, watches, and jewelry.

The case was investigated by the FBI and IRS. Victims may be eligible for restitution. The SEC is pursuing civil penalties, and Palafox remains banned from handling securities.