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A court sentenced the head of Praetorian Group International to 20 years in prison for organizing a crypto Ponzi scheme.
The project attracted over 90,000 investors and 8,198 BTC, with the total investment exceeding $201 million.
A verdict has been handed down in the US in a major cryptocurrency scam. Ramil Ventura Palafox, who headed Praetorian Group International (PGI), received a 20-year prison sentence for creating an investment scheme that siphoned off over $200 million. The project affected over 90,000 people from various countries.
Palafox, who holds both US and Filipino citizenship, controlled PGI and made key decisions. Last fall, he pleaded guilty to charges of fraud and money laundering.
From late 2019 to the fall of 2021, the company actively solicited investors, promising stable daily profits from Bitcoin trading—from 0.5% to 3% per day. In practice, no large-scale trading took place. Payments to early participants were made at the expense of new investors, consistent with the classic Ponzi scheme model.
Millions on Luxury Instead of Investments
During the project's operation, investors invested more than $201 million. This amount included at least $30.3 million in cash and 8,198 BTC, which were valued at the time at approximately $171.5 million.
According to the US Department of Justice, the company maintained a website and online portal that displayed fictitious, stable account growth. This created the illusion of profitability and investment security.
The investigation established that a significant portion of the funds was spent on personal needs. Approximately $3 million was spent on the purchase of 20 luxury cars. Another $329,000 was spent on penthouses in luxury hotels. Palafox spent over $6 million on four homes in Las Vegas and Los Angeles. An additional $3 million was spent on designer clothing, watches, jewelry, and furniture from famous brands.