Ramil Ventura Palafox, the man behind Praetorian Group International, has been sentenced to 20 years in prison after a global crypto Ponzi scheme unravelled.
Palafox promised investors easy daily profits from supposedly massive bitcoin trading, attracting more than 90,000 people worldwide.
In reality, the company wasn’t generating the returns it claimed and new investors’ money was used to pay earlier ones, making it the classic Ponzi playbook.
When the flow of fresh funds slowed, the scheme collapsed, leaving thousands with losses. The case is another reminder that in crypto, just like traditional finance, promises of guaranteed, high daily returns are often a major red flag hiding serious fraud.
90,000+ investors poured $201M into Praetorian Group
Over 90,000 people around the world gave Praetorian Group International more than $201 million, some in cash and some in bitcoin, because they thought their investments were growing.
Instead, prosecutors say Ramil Ventura Palafox used a fancy online dashboard to show fake profits while secretly buying luxury cars, designer brands, penthouses, and homes worth millions of dollars.
The U.S. Department of Justice said that victims lost at least $62.7 million. He agreed to pay back that amount as part of his plea deal, and the FBI may help victims get some of their money back, but for many, the damage has already been done, both financially and emotionally.
How do crypto ponzi schemes function?
Crypto Ponzi schemes usually start with a simple hook: promises of easy, high returns that sound too good to ignore.
Scammers make flashy websites and dashboards that show fake profits. They may even pay early investors with money from newer victims, which makes the scheme look real.
Using social media, referral bonuses, and shoutouts from influencers can help you build trust quickly and get more people to join. Because crypto moves quickly and across borders, scammers can get to thousands of people before anyone notices.
When you add in the excitement of the market and the fact that many new people are still learning how crypto works, these scams can spread more easily until the money runs out and everything falls apart.