The federal sentencing this week of Praetorian Group International (PGI) founder, Ramil Ventura Palafox, to 20 years in prison underscores intensifying international scrutiny of crypto-related fraud and the willingness of authorities to pursue cross-border enforcement against schemes that offer promised returns without legitimate trading operations.
U.S. prosecutors in the Eastern District of Virginia convicted the dual U.S.–Philippine citizen on wire fraud and money-laundering charges tied to a Bitcoin investment operation that raised more than $200 million from investors worldwide. Tens of thousands of participants from around the globe trusted PGI with funds between 2019 and 2021 after being lured by claims of consistent daily returns generated through large-scale cryptocurrency trading.
However, authorities found that PGI did not conduct trading at a level capable of producing those returns, and instead used new investor capital to pay earlier participants.
The press release from the Department of Justice website reads:
“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.
Palafox created a PGI website for investors to review their purported investment performance. From 2020 through 2021, Palafox caused the online portal to consistently and fraudulently misrepresent that victims’ investments were gaining value, misleading them to believe that their investments were profitable and secure.
Palafox spent money on expenses that served both personal purposes and to promote the fraudulent scheme.
He transferred at least $800,000 in fiat currency, plus an additional 100 bitcoin, then valued at approximately $3.3 million, to one of his family members.”
CEO of FTX Crypto Exchange, Sam Bankman-Fried, Sentenced to 25 Years in Prison
The report goes on to list the various personal items that Palafox had purchased over the years including homes, luxury cars, clothing, jewelry, watches, and home furnishings.
The ponzi scheme case also illustrates how enforcement actions in digital assets increasingly cross national borders. Regulators seized PGI’s website as far back as 2021, and associated operations were shut down in the United Kingdom under separate orders, signaling early signs of global cooperation before charges were unsealed in the U.S. civil and criminal proceedings.
In April 2025, the U.S. Securities and Exchange Commission (SEC) filed parallel civil charges, alleging widespread misrepresentation of PGI’s trading activity and its use of an AI-powered platform to project false earnings while promising guaranteed returns. Despite these claims, investigators determined that the company’s actual trading activity was minimal and could not support the yield levels it advertised.
The dual civil and criminal enforcement actions reflect a broader regulatory focus on protecting investors from high-risk crypto products that rely on recruiting new funds rather than legitimate market operations. As authorities expand cooperation across jurisdictions, this case is likely to serve as a reference point in how international reach and coordinated scrutiny can challenge fraudulent digital asset schemes.
REGULATION | United States CFTC Concludes Case Against MTI, a South-African Bitcoin Scam, Imposes $1.7 Billion Restitution to Victims
Stay tuned to BitKE for deeper insights into the global crypto space.
Join our WhatsApp channel here.
Follow us on X for the latest posts and updates
Join and interact with our Telegram community
_________________________________________