ALEXANDRIA, Va., Feb 13, 2026, 14:46 EST
- Palafox, the former CEO of Praetorian Group International, picked up a 20-year sentence after being convicted on wire fraud and money laundering charges.
- According to authorities, investors poured over $201 million into the scheme from 2019 to 2021, a large chunk of it in bitcoin.
- The SEC, in a separate civil action, calls the scheme PGI Global and accuses it of pulling off a $198 million fraud involving crypto and forex.
Ramil Ventura Palafox, 61, landed a 20-year prison term Thursday after a U.S. judge in Virginia found him guilty of operating a $200 million bitcoin Ponzi scheme, according to the U.S. Attorney’s Office for the Eastern District of Virginia. The dual U.S.-Philippines national ran Praetorian Group International, which prosecutors labeled a multi-level marketing and bitcoin trading operation. (Department of Justice)
The sentencing comes as U.S. officials tighten the screws on flashy crypto offerings in the wake of high-profile failures like FTX. According to Cointelegraph, the PGI case stands out as one of the larger crypto frauds in recent years, both in number of investors and total losses. This criminal case trailed a separate SEC civil action. (TradingView)
Palafox told investors they’d get daily returns between 0.5% and 3% from bitcoin trades, according to prosecutors. He relied on multi-level marketing, offering incentives for bringing in fresh recruits and their cash. Instead of generating actual profits, funds from new participants simply paid back earlier ones—the classic shape of a Ponzi scheme. (Department of Justice)
Between December 2019 and October 2021, investors funneled over $201 million into PGI, including at least 8,198 bitcoin—roughly $171.5 million back then, according to the IRS. The agency estimates losses hit $62.7 million or more. PGI’s online portal, the IRS said, misled investors with fake account growth. Palafox, meanwhile, spent millions on luxury cars, real estate and designer items, and moved at least $800,000 plus 100 bitcoin to a relative. (IRS)
The SEC slapped charges on Palafox in April 2025, alleging his firm, PGI Global, pulled in roughly $198 million from investors around the globe via “membership” deals linked to crypto assets and forex trading. According to the agency, Palafox misappropriated upwards of $57 million, funneling much of the rest into supposed returns and referral bonuses—what officials call a Ponzi-like operation. The SEC is now after injunctions, disgorgement, and civil penalties. Laura D’Allaird, head of the agency’s cyber and emerging technologies group, said he “used the guise of innovation to lure investors.” (SEC)
The SEC complaint notes PGI Global’s website disappeared in June 2021. Palafox stepped down as CEO that September, with relaunch plans falling apart. According to the filing, regulators in the Philippines put out a fraud alert and U.S. tax authorities seized the site. The company then halted new investor recruitment. (SEC)
Palafox admitted guilt last September, pleading to wire fraud plus concealment money laundering in connection with the PGI scheme, according to the FBI’s victim update page. The bureau’s now gathering details from possible victims, who may be eligible for restitution or other victim services. (FBI Forms)
The Justice Department stepped in on the SEC’s civil case in Virginia federal court, pausing discovery as prosecutors pressed forward with the criminal side, court records show. Even if a prison sentence is handed down, victims often don’t see full repayment; tracking assets—particularly with crypto or international moves—remains tricky, and the civil action could tack on further penalties. (dockets.justia.com)
