What happened?
Ramil Ventura Palafox, the CEO of bitcoin investment and multi-level marketing firm, Praetorian Group International (PGI), has pleaded guilty to wire fraud and money laundering charges. Palafox was accused of running a Ponzi scheme that defrauded over 90,000 international investors by falsely promising daily profits from high-volume bitcoin trading. PGI raised more than $201 million between December 2019 and October 2021 before it collapsed.
Who does this affect?
The vast majority of the victims are the over 90,000 global investors who were lured into investing in PGI with the promise of substantial daily returns. Many of these investors were left without access to their funds when the scheme collapsed. Palafox himself is now facing a maximum of 40 years in prison, with sentencing expected on February 3, 2026.
Why does this matter?
This incident underscores the risks and potential for fraud within the cryptocurrency marketplace. The collapse of PGI not only resulted in financial loss for thousands of investors, but it could also negatively impact the public’s trust in similar legitimate operations and the crypto market overall. It serves as a reminder for regulatory authorities to strengthen their oversight and for potential investors to conduct thorough due diligence.