CEO of Bitcoin scheme admits guilt to defrauding 90,000 investors offering daily returns up to 3 percent, taking in 62M and 200M.
The CEO of a Bitcoin trading company was convicted of operating a Ponzi scheme offering returns up to 3 percent a day. Praetorian Group International (PGI) was a multi-level marketing company that was being run by Ramil Ventura Palafox.
According to the reports of the U.S. Justice Department, he defrauded over 90,000 investors all around the globe.
Palafox confessed to wire fraud and money laundering in connection to the scheme. In December 2019 to October 2021, PGI raised more than 201 million dollars in investor capital. False promises of returns of between 0.5 to 3% per day were made.
PGI, however, did not make the profits it said it did. The conventional Ponzi was confirmed as the investors were paid in their own money or with the money of new players.
Unveiling the Ponzi Illusion: How PGI Misled Thousands
The fraudulent methods employed by Palafox were seen in the court records. He developed a site that indicated the existence of imaginary gains in order to make investors believe that their money was increasing.
This online portal distorted the values of investments in 2020 and 2021. The design of the scheme made further investment a guarantee and ensnared the victims in the scheme.
The investors had lost a minimum of 62.7 million dollars. Palafox spent millions of dollars on luxury assets and cars. He has made 20 purchases of sports cars such as Porsche, Lamborghini, and Ferrari.
He also purchased four of the upscale houses in Las Vegas and Los Angeles. His personal expenses included luxury brands like Gucci, Cartier, and Rolex. This hefty expenditure was based on the money of the investors.
The CEO gave his family members large amounts of money, including 100 bitcoin worth at the time, at 3.3 million dollars. Palafox is convicted of multiple crimes, and he is facing up to 40 years in jail.
He agreed to reimburse over 62 million dollars in restitution. The case was prosecuted in the Eastern District of Virginia, where the sentencing will take place on February 10, 2026.
Massive Bitcoin Losses: What Investors Need to Know
The Praetorian Group International case demonstrates the risks of Ponzi schemes that promise returns to the world, which is remarkable in relation to crypto.
The network of Palafox attracted thousands of people around the world with unrealistic promises. The case was made to be more visible by the United States Attorney of the Eastern District of Virginia and the FBI.
The case can be used as a warning against schemes that claim to make a person a fortune each and every day using Bitcoin. Such guarantees need to be approached with caution by the investors.
The victims of PGI have a chance of restitution. FBI and DOJ websites provide further updates and information about the victims.
The post Bitcoin Ponzi CEO Pleads Guilty, Promised 3% Daily Returns appeared first on Live Bitcoin News.