CEO of PGI admits mass fraud with bitcoin that affected more than 90,000 investors

The manager of PGI accepted the charges against him, confessing having operated a Ponzi scheme based on Bitcoin, with which he promised daily returns to investors but diverted funds for personal expenses.

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• CEO of PGI He admitted having scammed more than 90,000 investors worldwide.
• Promised unreal daily returns from 0.5% to 3% with alleged operations of Bitcoin.
• He appropriated millions for personal luxuries, sports cars and properties in the US.

Ramil Ventura Palafox, who appears as executive director of Praetorian Group International (PGI)he declared guilty of electronic fraud and money laundering for a Ponzi scheme with Bitcoin, with which he disappointed more than 90,000 investors worldwide. The admission of guilt was confirmed by the United States Department of Justice (DOJ) In a statement on Wednesday.

According to the statement, between December 2019 and October 2021, investors deposited more than USD $ 201 million in Pgi, including approximately USD $ 30.3 million in cash and 8,198 BTC valued at USD $ 171.5 million. The fraudulent scheme left losses for at least USD $ 62.7 million, while the platform showed supposed constant profits on its website to keep participants deceive.

PGI CEO admits fraud with bitcoin
90,000+ investors; $ 201M received; 8,198 BTC
Losses ≥ $ 62.7m; Funds deviated to luxuries
He declared himself guilty; Face up to 40 years pic.twitter.com/krt8sf8l0o

– Diario ฿ Itcoin (@diariobitcoin) SEPTEMBER 18, 2025

PGI He claimed to devote himself to high volume operations with Bitcoin and He promised daily returns from 0.5% to 3%, but actually used money from new investors to pay the previous ones. This mechanism, typical of the Ponzi schemes, allowed Palafox hold the illusion of profitability without large -scale genuine commercial activity.

The defendant, 60 years old and with American and Filipina citizenship, not only directed the company, but also his main promoter. Instead of investing the funds legitimately, he diverted great sums for personal expenses, which according to federal prosecutors constitutes a serious violation of investor confidence in a sector already vulnerable to fraud.

Luxurious expenses and diversion of funds

The DOJ explained that Palafox spent about USD $ 3 million in 20 luxury cars – among them Porsche, Lamborghini, Bentley, McLaren and Ferrari-. It also allocated USD $ 329,000 to acquire luxury hotels and more than USD $ 6 million in homes in Las Vegas and Los Angeles.

In addition, he spent other USD $ 3 million in designer and brand furniture articles such as Gucci, Cartier, Rolex and Hermès. The authorities indicated that he even transferred at least USD $ 800,000 in cash and 100 BTC – valued at USD $ 3.3 million at that time – to a relative, evidencing the use of illicit funds for personal purposes.

These findings reinforce the alert about fraudulent schemes that use the image of cryptocurrencies to attract investors promising impossible returns. The sophistication of the plan and its global scope reflect the attractiveness of Bitcoin For illegal actors, taking precisely the lack of legal frameworks and the alleged ignorance of the authorities in terms of surveillance.

Judicial process and possible convictions

Palafox Face a sentence of up to 40 years in prison and will be sentenced on February 3, 2026. As part of the guilt agreement, He agreed to return approximately USD $ 62.7 million in restitution. However, federal sentences are usually lower to the maximum legal after considering conviction guidelines and statutory factors.

The case of PGI Underline the need for investors carefully investigating cryptocurrency investment platforms. The authorities have repeatedly warned of projects that promise fast and safe profits, especially in volatile markets such as Bitcoin.

The fall of PGI It adds to other cases of fraud in the crypto sector and highlights the importance of stricter regulations and international surveillance to protect consumers. This judicial process marks a relevant precedent in the United States and sends a clear message to other promoters of similar schemes worldwide.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain

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