A cryptocurrency investor lost close to $63 million in a massive Ponzi scheme. Ramil Ventura Palafox, the mastermind behind Praetorian Group International, promised investors 0.5-3% daily returns on their Bitcoin investments. However, the only way these returns materialized was by using funds from new investors. This left many investors reeling.
Palafox’s luxurious lifestyle didn’t go unnoticed, despite his scheme being exposed as early as April 2021. He spent millions on properties and luxury items while freezing withdrawals due to “technical issues.” The U.S. SEC officially charged Palafox in April 2025, and he pleaded guilty in September 2025.
As part of the plea deal, Palafox promised to pay back $63 million in damages. However, investors can expect to receive much less due to the sale of his assets. This case highlights how fake promises and greed can lead to devastating losses for innocent investors.
Source: https://www.tomshardware.com/tech-industry/cryptocurrency/ponzi-schemer-who-promised-3-percent-in-daily-returns-on-bitcoin-investment-sentenced-to-20-years-in-federal-prison-usd201-million-scam-predictably-collapsed-leaving-investors-reeling