Did Ramil Ventura Palafox get a 20-year prison sentence?

TL;DR: Ramil Ventura Palafox, CEO of Praetorian Group International, was sentenced to 20 years in federal prison for orchestrating a $200 million Bitcoin Ponzi scheme that defrauded over 90,000 investors worldwide. He promised daily returns of 0.5% to 3%, but instead used new investors' funds to pay earlier participants, leading to significant losses. Praetorian Group International CEO Pleads Guilty to $200M Bitcoin Ponzi Scheme - EDVA

The Rise and Fall of Praetorian Group International

Between late 2019 and October 2021, over 90,000 people worldwide handed Praetorian Group International more than $201 million. Here’s the thing: Palafox, who holds both U.S. and Philippine citizenship, dangled the promise of daily returns between 0.5% and 3%. But, rather than actually trading Bitcoin in any meaningful way, PGI just shuffled money around—paying old investors with cash from new ones. Classic Ponzi move. If you ask me, the scale was jaw-dropping. Praetorian Group International CEO Pleads Guilty to $200M Bitcoin Ponzi Scheme - EDVA

Lavish Spending and Legal Consequences

Palafox didn’t just pocket the cash quietly. No, he splurged big time—racking up:

More than $3 million on flashy cars like Lamborghinis, Ferraris, and Bentleys.
Over $6 million on fancy homes in Las Vegas and Los Angeles.
Roughly $3 million on designer clothes and expensive jewelry.

In September 2025, he finally pleaded guilty to wire fraud and money laundering. He’s on the hook to pay back $62.7 million. Then, on February 10, 2026, the judge handed down a 20-year federal prison sentence. Just a heads-up: restitution doesn’t always mean victims see all their money returned, so that’s a big caveat to keep in mind. Praetorian Group International CEO Pleads Guilty to $200M Bitcoin Ponzi Scheme - EDVA

Lessons for Companies Seeking Funding

For businesses hunting for capital, this story is a stark reminder: do your homework. I’ve found that overlooking due diligence can be a costly mistake. Let me break down some essentials.

1. Conduct Thorough Due Diligence

Don’t jump in without:

Verifying credentials: Make sure your potential investors or firms are legit.
Researching track records: Check their history and previous deals.
Seeking references: Ask for feedback from folks who’ve worked with them before.

2. Be Wary of Unrealistic Promises

If someone’s guaranteeing sky-high returns with “zero” risk? That’s a huge red flag. Legit investments always carry some risk, so if it sounds too good to be true, it probably is. How to spot a crypto scam: the top red flags to watch for - McAfee

3. Understand Investment Structures

You want to know exactly how your money is being handled and how the returns are made. If it’s overly complicated or vague, run the other way.

4. Monitor Fund Usage

Keep tabs on where the cash is going. Regular audits and transparent reporting aren’t just best practices—they can save you from disaster.

Recognizing and Avoiding Investment Scams

Investment scams are everywhere, and they get craftier by the day. Watch out for these giveaways:

Guaranteed returns: No such thing as a risk-free high return.
Pressure tactics: If they’re rushing you to invest, pause and think.
Unregistered investments: Make sure the opportunity is properly registered with regulators.
Complex strategies: Sometimes overly complicated plans hide shady schemes.

One more thing: always cross-check with trusted sources like the FTC before handing over your money. What to know about cryptocurrency scams - FTC

FAQs

Q: How can I verify the legitimacy of an investment firm?

A: Check for registration with regulatory bodies, review their history, and seek references from previous clients.

Q: What should I do if I suspect an investment scam?

A: Report it to authorities like the Securities and Exchange Commission (SEC) or the Federal Trade Commission (FTC).

Q: Are all high-return investments scams?

A: Not necessarily, but high returns with low risk are uncommon. Always conduct thorough research.

Q: How can I protect my company from fraudulent investors?

A: Implement strict due diligence processes, consult with financial advisors, and maintain transparency in all dealings.

Staying informed and cautious is crucial in the investment landscape. By recognizing red flags and conducting thorough research, companies can safeguard themselves against potential scams.

For a visual guide on identifying and avoiding crypto scams, consider watching the following video: How To Spot & Avoid Crypto Scams