Market News

Court Sentences Bitcoin Scam CEO to 20 Years for Massive Ponzi Scheme

A U.S. court has sentenced Ramil Ventura Palafox, the CEO of Praetorian Group International (PGI), to 20 years in prison for orchestrating a massive Ponzi scheme.

The fraudulent firm falsely claimed to generate profits through cryptocurrency trading and misappropriated over $200 million from nearly 90,000 investors around the globe.

The Department of Justice revealed that Palafox marketed PGI as a Bitcoin trading venture promising daily returns ranging from 0.5% to 3%.

However, investigations showed that PGI was not engaged in actual Bitcoin trading capable of securing such profits.

To maintain the illusion of success, Palafox created a fake online portal displaying fabricated investment performance data.

The scheme, which took place from December 2019 to October 2021, primarily funded payouts to earlier investors with funds from new participants.

Authorities also uncovered that Palafox misappropriated investor funds for personal luxuries, including $3 million spent on high-end vehicles and accessories.

After being found guilty of wire fraud and money laundering, he is now set to serve two decades behind bars.

In related news, the FBI is working to identify victims of the PGI scheme and is exploring avenues for restitution.

Current estimates suggest that total losses linked to this Bitcoin Ponzi scheme stand at approximately $62.7 million.