Praetorian Group CEO sentenced to 20 years for $200M fraud
Praetorian Group International CEO received a 20-year prison sentence on 11 February 2026 for running a $200 million Bitcoin Ponzi scheme. The scheme defrauded over 90,000 investors worldwide between December 2019 and October 2021.
CEO receives 20-year sentence for fraud scheme
A U.S. federal judge sentenced Ramil Ventura Palafox to 20 years in prison on 11 February 2026. Palafox operated Praetorian Group International, a company that ran a Bitcoin Ponzi scheme. The sentencing took place in the Eastern District of Virginia.
Scheme collected over $200 million from investors
Praetorian Group International defrauded more than 90,000 investors worldwide between December 2019 and October 2021. The scheme collected over $200 million in total. This included $30,295,289 in fiat currency and 8,198 bitcoin worth $171,498,528. Court documents confirmed investors suffered losses totaling at least $62.69 million.
Luxury purchases funded by investor money
Palafox spent approximately $3 million on 20 luxury cars using investor funds. He spent another $3 million to buy clothing, watches, jewelry, and home furnishings at luxury retailers. These retailers included Christian Louboutin, Gucci, Versace, Rolex, and Hermes. Federal court evidence showed Palafox also purchased homes in Las Vegas and Los Angeles with investor money.
Federal case prosecuted in Virginia district
The U.S. Department of Justice announced the sentencing through its Eastern District of Virginia office. Palafox pleaded guilty to the charges in September 2025. The Internal Revenue Service Criminal Investigation division participated in the case. The Ponzi scheme operated as a textbook fraud case where early investors received returns from new investor deposits rather than legitimate trading profits.
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