Bitcoin Scam Boss Pleads Guilty in $200M Ponzi Scheme

Bitcoin Scam Boss Pleads Guilty in $200 Million Ponzi Scheme

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 19, 2025

Key Takeaways

Ramil Palafox, CEO of PGI, pleaded guilty to running a fake Bitcoin scheme that promised daily profits but delivered none;
Over $200 million was collected from over 90,000 investors, but much of it funded luxury homes, cars, and personal spending;
Palafox faces up to 40 years in prison and has agreed to repay $62.7 million in restitution, while sentencing is set for February 3, 2026.

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Ramil Ventura Palafox, the founder and head of Praetorian Group International (PGI), has pleaded guilty to wire fraud and money laundering in a case brought in Virginia.

According to a press release by the Department of Justice (DOJ), Palafox, who holds both American and Filipino citizenship, was responsible for promoting and running a cryptocurrency investment scheme that misled thousands of individuals.

Authorities stated that PGI offered a Bitcoin BTC $116,392.90 investment program, which promoted daily earnings ranging from 0.5% to 3%.

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However, the operation did not actually generate these returns through real trading. Instead, money from new participants was used to pay earlier investors.

Palafox is due to be sentenced on February 3, 2026. He could face up to 40 years in prison, although actual sentences often fall below the maximum. As part of his plea, he has agreed to pay back $62.7 million.

Between late 2019 and late 2021, PGI raised at least $201 million. That included over $30 million in regular currency and more than 8,100 Bitcoin, worth about $171 million at the time.

Instead of being used for trading, a large portion of the funds was spent on Palafox’s personal purchases. This included approximately $3 million for 20 high-end vehicles and over $6 million for luxury homes in cities such as Las Vegas and Los Angeles.

More than 90,000 people are believed to have invested in the program. The DOJ has estimated confirmed losses of at least $62 million.

On September 16, the Denver District Court issued a ruling in the case of Eli and Kaitlyn Regalado, who were accused of violating state financial laws through INDXcoin. What does the ruling include? Read the full story.