Bitcoin Ponzi CEO Pleads Guilty, $62M Restitution
Praetorian Group International (PGI) CEO Ramil Ventura Palafox pleaded guilty to wire fraud and money laundering for running a Bitcoin Ponzi scheme that defrauded over 90,000 investors. From December 2019 to October 2021, PGI raised $201M by promising daily returns of 0.5%–3%. Palafox used new investor funds to pay earlier participants and fund a lavish lifestyle, spending millions on luxury cars, real estate, and personal expenses. Confirmed investor losses exceed $62.7M. He faces up to 40 years in prison and agreed to $62.7M in investor restitution. Sentencing is scheduled for February 10, 2026, in the Eastern District of Virginia. This Bitcoin Ponzi scheme underscores ongoing crypto fraud risks and serves as a market warning. Traders should verify regulatory compliance before investing in any crypto opportunity promising guaranteed daily returns.
Neutral
While the conviction of a major Bitcoin Ponzi scheme highlights elevated crypto fraud risks, it targets a specific scam rather than Bitcoin’s fundamentals. Short-term, the news may weigh on sentiment and remind traders of due diligence. Long-term, the broader Bitcoin network and market resilience remain intact. As a result, the impact on Bitcoin’s price is likely neutral, signaling caution without fundamentally altering market trajectory.