PGI a Global Bitcoin Ponzi Scheme Leaves Investors With $63 Million in Losses

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Global Bitcoin Ponzi Scheme Leaves Investors With $63 Million in Losses.

A $200 million crypto Ponzi scheme has been revealed, exposing a vast global fraud that lured 90,000 investors with fake returns and funded outrageous luxury spending.

CEO Pleads Guilty in $200 Million Global Crypto Ponzi Scheme

The U.S. Department of Justice (DOJ) announced on September 17 that the chief executive of a global bitcoin investment initiative has admitted to orchestrating a fraudulent operation that defrauded thousands of people worldwide. Ramil Ventura Palafox, who ran Praetorian Group International (PGI), pleaded guilty to wire fraud and money laundering for operating what prosecutors described as a Ponzi scheme. Officials stated that the company’s marketing promised daily returns of up to 3%, but in reality, it was using new investors’ funds to pay off previous participants.

Court documents revealed the scale of the scheme: “From December 2019 to October 2021, at least 90,000 investors worldwide invested more than $201,000,000 in PGI, including at least $30,295,289 in fiat currency and at least 8,198 bitcoins worth $171,498,528.” 

The DOJ added:

As a result of Palafox’s actions, investors suffered total losses of at least $ 62.69 million.

Prosecutors explained that Palafox designed a website that falsely reported increasing account balances to maintain the trust of victims, while funneling the money toward personal luxuries.

Investigators revealed that he purchased 20 exotic cars worth approximately $3 million, penthouses in hotels, and multi-million-dollar homes in Las Vegas and Los Angeles.

Officials also detailed how investor money was diverted for extravagant purchases and to enrich his relatives. “Palafox spent an additional $3 million of investor money to purchase clothing, watches, jewelry, and home furnishings from luxury retailers, including Louboutin, Neiman Marcus, Gucci, Versace, Ferragamo, Valentino, Cartier, Rolex, and Hermes, among others,” the Justice Department detailed, adding:

He transferred at least $800,000 in fiat currency, plus an additional 100 bitcoins, which were then valued at approximately $3.3 million, to a family member.

Palafox awaits sentencing on February 10, 2026, where he faces up to four decades in prison and has agreed to restitution of $62,692,007. A federal judge will ultimately decide his sentence after reviewing statutory guidelines and considerations.