The Chief Executive Officer of a multi-level marketing and bitcoin trading firm pled guilty yesterday to wire fraud and money laundering for operating a Ponzi scheme that defrauded over 90,000 investors worldwide.
According to court documents, Ramil Ventura Palafox, 60, a dual citizen of the United States and the Philippines, owned and operated Praetorian Group International (PGI) and served as PGI’s Chairman, Chief Executive Officer, and chief promoter. Palafox falsely claimed that PGI was engaged in bitcoin trading, and he promised daily returns of 0.5 to 3%. PGI was not trading bitcoin at a scale capable of making the promised returns, however, and Palafox was paying the investors back with their own money or with funds received from other investors.
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 bitcoin worth $171,498,528. As a result of Palafox’s actions, investors suffered losses totaling at least $62,692,007.
Source: Praetorian Group International CEO pleads guilty to $200M bitcoin Ponzi scheme | DOJ Press Release