PGI Global CEO handed 20-year sentence for $200 million bitcoin, forex Ponzi scheme
Analysis
Price Impact
LowThe news details the sentencing of a ponzi scheme operator who misused funds, including bitcoin, from investors. while the amount stolen is significant for the victims, it represents a very small fraction of bitcoin's overall market capitalization and trading volume. this event is an isolated case of fraud, not indicative of systemic issues within the bitcoin network itself, thus having a minimal direct price impact.
Trustworthiness
HighThe information comes from coindesk, citing official statements from the u.s. attorney's office, fbi, and irs, which are reputable and primary sources for legal proceedings and investigations.
Price Direction
NeutralThe exposure and sentencing of a ponzi scheme operator, even one involving bitcoin, typically do not have a direct or substantial impact on bitcoin's price. the market generally differentiates between fraud committed by individuals/companies and the underlying technology or asset. this event might contribute to a general, minor negative sentiment around 'crypto scams' but won't move btc's price materially.
Time Effect
ShortThe event described (the sentencing) is the culmination of a past crime (scheme ran 2019-2021). any market sentiment related to the scheme itself would have likely been absorbed when it was first exposed or when legal actions began. the current sentencing has a short-term, almost negligible, market effect.
Original Article:
Article Content:
Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email PGI Global CEO handed 20-year sentence for $200 million bitcoin, forex Ponzi scheme Instead of investing in bitcoin and foreign currency trading, as promised, Palafox used new investor funds to pay old ones and siphoned millions for personal use. By Francisco Rodrigues , AI Boost | Edited by Sheldon Reback Feb 13, 2026, 10:59 a.m. Make us preferred on Google (Tingey Injury Law Firm/Unsplash/Modified by CoinDesk) What to know : Ramil Ventura Palafox, founder of Praetorian Group International, ran a Ponzi scheme that misled over 90,000 investors and drained over $62.7 million. Instead of investing in bitcoin and forex trading as promised, Palafox used new investor funds to pay old ones and siphoned millions for personal use. Palafox spent millions on luxury cars, homes and designer items, while fabricating investment returns on an online portal. The CEO of Praetorian Group International (PGI) was sentenced to 20 years in prison in the U.S. for running a global Ponzi scheme that falsely claimed to invest in bitcoin and foreign exchange trading. Ramil Ventura Palafox, 61, promised daily returns of up to 3%, misleading more than 90,000 investors and draining over $62.7 million in funds, according to a Thursday statement from the U.S. Attorney's Office for the Eastern District of Virginia. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . PGI collected more than $201 million from investors between late 2019 and 2021, including over 8,000 bitcoin BTC $ 66,560.23 , according to court records. Instead of investing the money, prosecutors said Palafox used new investor funds to pay old ones while siphoning millions for himself. To keep the illusion going, Palafox built an online portal where investors could track their supposed profits, with numbers that were entirely fabricated. In reality, Palafox was buying Lamborghinis, luxury homes in Las Vegas and Los Angeles and penthouse suites at high-end hotels. Prosecutors say he spent $3 million on luxury cars and another $3 million on designer clothing, watches, and jewelry. The case was investigated by the FBI and IRS. Victims may be eligible for restitution. The SEC is pursuing civil penalties, and Palafox remains banned from handling securities. Ponzi scheme Department of Justice Crime AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Accelerating Convergence Between Traditional and On-Chain Finance in 2026? By CoinDesk Jan 30, 2026 Commissioned by Societe Generale-FORGE Read full story More For You Crypto execs Armstrong, Garlinghouse among many named to U.S. CFTC advisory group By Jesse Hamilton | Edited by Stephen Alpher 12 hours ago The Commodity Futures Trading Commission's new chief, Mike Selig, repurposed the agency's previous CEO innovation council, almost tripling its members. What to know : The U.S. Commodity Futures Trading Commission has set its inaugural list for the Innovation Advisory Committee, including Coinbase CEO Brian Armstrong and Ripple CEO Brad Garlinghouse. The group will have a role in steering future regulations as the U.S. derivatives watchdog takes on oversight duties in the crypto markets. Read full story Latest Crypto News Bitcoin’s long-term rally is ‘broken’ until it reclaims $85,000, Deribit executive says 41 minutes ago Wall Street analysts cut Coinbase price targets following Q4 earnings miss 1 hour ago Recapping Consensus Hong Kong 2 hours ago Crypto execs Armstrong, Garlinghouse among many named to U.S. CFTC advisory group 12 hours ago Coinbase misses Q4 estimates as transaction revenue falls below $1 billion 13 hours ago Bitcoin tumbles back near last week's lows as AI fears crush tech and precious metals plunge 14 hours ago Top Stories Key Senate Democrat wants U.S. crypto bill to move, and SEC chief reveals danger of defeat 17 hours ago Ark Invest's Cathie Wood says bitcoin will thrive amid ‘deflationary chaos’ created by AI and innovation 17 hours ago Crypto PAC Fairshake seeks to force resistant Texas Democrat Al Green from U.S. House 15 hours ago In this article BTC BTC $ 66,560.23 ◢ 0.83 %