Victims may qualify for restitution in the $200-million theft between 2019 and 2021
A federal judge in Virginia has sentenced Ramil Ventura Palafox, founder of Praetorian Group International, to 20 years in prison for running a large cryptocurrency Ponzi scheme. Prosecutors said the operation collected more than $200 million from investors between 2019 and 2021.
Palafox, 61, was convicted of wire fraud and money laundering. Authorities said he promised daily returns of up to 3% through what he described as high-level Bitcoin trading. Instead, prosecutors argued that investor money was recycled to pay earlier participants, a classic Ponzi structure.
Court records show that more than 8,000 Bitcoin were invested in the scheme, valued at roughly $171 million at the time. Total contributions exceeded $201 million, and losses were estimated at over $62 million. Tens of thousands of investors were affected, according to the Justice Department.
Prosecutors said Palafox operated an online dashboard that displayed false account growth to reassure customers. The company also used a multilevel marketing model, offering commissions to members who recruited new investors.
Authorities detailed significant personal spending tied to investor funds. Palafox allegedly used millions to purchase luxury vehicles and high-end homes in Las Vegas and Los Angeles. Additional funds went toward upscale retail purchases, penthouse rentals, and transfers to a family member.
The criminal case follows a civil lawsuit filed by the Securities and Exchange Commission, which accused Palafox of misrepresenting trading activity and guaranteeing unrealistic profits. Regulators had previously seized the company’s website, and related operations were halted in the United Kingdom.
