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The head of a global virtual asset Ponzi scheme that defrauded 90,000 investors and stole $200 million has been sentenced to 20 years in prison by a U.S. court.
On February 13 (local time), the U.S. District Court for the Eastern District of Virginia in Alexandria sentenced Ramil Ventura Palafox, CEO of Praetorian Group International (PGI), to 20 years in prison for leading a virtual asset Ponzi scheme. Palafox, 61, a dual citizen of the United States and the Philippines, carried out large-scale financial crimes targeting investors worldwide before ultimately facing justice.
From December 2019 to October 2021, Palafox operated PGI, luring more than 90,000 investors globally with false advertisements promising daily returns of 0.5% to 3% through sophisticated Bitcoin (BTC) trading. Investigations revealed that the company conducted little to no legitimate trading capable of generating the promised returns and instead used funds from new investors to pay earlier investors, a classic Ponzi scheme structure. Investors poured more than $201 million into PGI, including 8,198 BTC.
Palafox used more than $57 million of the stolen funds to finance an extravagant lifestyle. He spent $3 million on over 20 luxury vehicles, including Lamborghinis and Ferraris, and squandered millions more on upscale residences and penthouse accommodations in Las Vegas and Los Angeles. He also spent $3 million shopping for luxury brands such as Cartier and Louis Vuitton, indulging in lavish consumption funded by investors’ losses.
Palafox admitted to his crimes and agreed to pay $62,692,007 in restitution to victims, though substantial recovery appears unlikely given the extent of the dissipated funds. The ruling constitutes criminal punishment separate from a civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC), reflecting the strong determination of U.S. authorities to clean up the virtual asset market and prevent similar crimes.
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