Praetorian CEO Ramil Palafox sentenced to 20 years for $200M Bitcoin Ponzi scheme that defrauded 90,000 investors of $62.7M.
$200M Bitcoin Fraud Lands Praetorian CEO 20-Year Sentence after a U.S. federal court handed down prison time to Ramil Ventura Palafox for operating a large-scale crypto Ponzi scheme that affected more than 90,000 investors worldwide.
DOJ Announces 20-Year Prison Sentence
The U.S. Department of Justice said Ramil Ventura Palafox was sentenced to 20 years in prison.
He served as CEO, chairman, and primary promoter of Praetorian Group International. Authorities said he ran a $200 million Bitcoin fraud scheme.
Palafox is a dual citizen of the United States and the Philippines. He pleaded guilty in September to wire fraud and money laundering charges.
The sentencing followed an investigation into his company’s activities between 2019 and 2021.
According to the DOJ, more than 90,000 investors deposited over $201 million into Praetorian Group International.
Victims suffered losses of at least $62.7 million. The court also ordered restitution in that amount.
Scheme Promised Daily Bitcoin Returns
Prosecutors said Palafox told investors his company conducted high-volume Bitcoin trading.
He promised daily returns ranging from 0.5% to 3%. However, authorities stated the company did not trade at a level capable of producing such returns.
Instead, funds from new investors were used to pay earlier participants. This structure matched a classic Ponzi scheme model.
The DOJ said investor funds were recycled to maintain the appearance of profits.
“Palafox maintained a PGI website and online portal that falsely displayed steady gains,” the DOJ stated.
Authorities said the portal misled victims into believing their accounts were secure and growing. The scheme operated from December 2019 to October 2021.
Related Reading: AML Bitcoin Founder Sentenced to 7 Years for $10M Crypto Fraud
Investor Funds Spent on Luxury Assets
Court documents show that Palafox used investor funds for personal expenses. Authorities said he spent about $3 million on 20 high-end vehicles. He also spent $329,000 on luxury hotel penthouses.
Prosecutors reported that more than $6 million was used to purchase four homes in Las Vegas and Los Angeles.
Another $3 million went toward designer clothing, jewelry, watches, and furnishings. Retailers included Gucci, Cartier, Rolex, and Hermès.
Investigators said Palafox transferred at least $800,000 in cash and 100 Bitcoin to a family member.
The Bitcoin was valued at about $3.3 million at the time. As part of his plea agreement, he agreed to pay $62.7 million in restitution, and the DOJ noted that victims may seek payments through the Federal Bureau of Investigation.
Source: https://www.livebitcoinnews.com/200m-bitcoin-fraud-lands-praetorian-ceo-20-year-sentence/
