Michaela
Ramil Ventura Palafox, CEO of Praetorian Group International (PGI), has pleaded guilty to wire fraud and money laundering after running a Ponzi scheme that scammed more than 90,000 investors globally.
Key points:
- Ramil Ventura Palafox, CEO of PGI, ran a $200M Bitcoin Ponzi scheme, defrauding over 90,000 investors with false promises of daily returns.
- Investors lost roughly $62M as Palafox used new funds to pay earlier investors and manipulated a website to display fake profits.
- Palafox spent millions of the misappropriated funds on luxury cars, homes, designer goods, and transfers to family members.
Court filings revealed that Palafox, who also acted as PGIβs chairman and chief promoter, misled investors by claiming the firm actively traded Bitcoin and guaranteed daily returns of 0.5% to 3%. In reality, PGI lacked the capacity to generate such profits, and Palafox repaid investors using funds from new or existing investors, a hallmark of a Ponzi scheme.
The court documents further show that between December 2019 and October 2021, investors poured over $200 million into Palafoxβs Bitcoin Ponzi scheme, including at least $30 million in cash and more than 8,198 Bitcoin, valued at roughly $171 million. Palafoxβs Ponzi scheme ultimately resulted in investors losing an estimated $62 million.
Related: Industry Celebrates the New $70M Domain Mogul But His Crypto Shadows Linger
To further the ruse, Palafox developed a website for the multi-levΠ΅l marketing and Bitcoin trading firm, allowing investors to track their supposed earnings. From 2020 to 2021, he manipulated the portal to show consistent gains, misleading investors into believing their funds were secure and profitable.
Furthermore, Palafox used the misappropriated funds for both personal indulgences and to promote PGIβs Ponzi scheme. He reportedly spent around $3 million on 20 luxury cars, including Ferrari, McLaren, and Porsche models, and another $329,000 on penthouse suites at a high-end hotel chain.
Palafox also purchased four homes in Las Vegas and Los Angeles totaling over $6 million and spent roughly $3 million on designer clothing, watches, jewelry, and home furnishings. Additionally, at least $800,000 in cash and 100 Bitcoin, valued at about $3.3 million at the time, were transferred to a family member.
Related: Crypto Titans Bunker Down Now: Vitalik’s Austerity Vow, Binance $1B Bitcoin Shield
Bitcoin Ponzi Scheme: SHIB Urges DYOR for Safer Investing
The $200 million Bitcoin Ponzi scheme orchestrated by Palafox serves as a stark reminder that in the crypto world, doing your own research isnβt optional, itβs survival. The lesson is straightforward: promises of daily returns that sound too good to be true are classic red flags that can drain wallets and erode trust across the entire market.
SHIB has long advocated for βdoing your own researchβ or DYOR as a core principle of its community. The lesson from PGIβs collapse is exactly why: understanding a projectβs fundamentals, its utility, and the team behind it can save investors from falling for schemes built on hype rather than substance.
While scams like this shake sentiment, they also spΠΎtlight the value of sticking with projects that actually deliver. SHIB holders are reminded that due diligence isnβt just advice, itβs a shield, helping the community grow smarter, safer, and more resilient in an unpredictable market.
Follow on X
Follow on Instagram
Read More
- $2M UK Crypto Scam Sparks Warning: DYOR or Risk Losing More Than Tokens
- IcomTech Promoter Sentenced to 10 Years for Crypto Ponzi Scheme
- Lian Warns Against Hasty Bitcoin Adoption, Urges Foundational Policymaking
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
