Ponzi schemer behind $201 million Bitcoin scam sentenced to 20 years in federal prison — promised 3% daily returns on Bitcoin investments, left investors reeling
Source: Tom’s Hardware
Background
The cryptocurrency rush of the late 2010s led to heavy investment in the field. However, as with every gold rush, there are always fake map sellers. One of those is Ramil Ventura Palafox, who was sentenced to a full 20 years in federal prison by a Virginia court for running a Bitcoin Ponzi scheme worth $201 million.
The scheme operated from December 2019 to October 2021, capitalizing on the surge in Bitcoin’s popularity during that period.
Scheme Details
Palafox’s venture, Praetorian Group International, advertised 0.5 % to 3 % daily returns to its investors—an impossible figure in any legal setting. The method was straightforward: investors were promised high, compounded daily payouts on their Bitcoin deposits, while new investor funds were used to pay earlier participants.
Sentencing
A Virginia federal court sentenced Ramil Ventura Palafox to 20 years in prison for his role in the $201 million Bitcoin Ponzi scheme. The judgment reflects the severity of the fraud and the substantial losses suffered by investors.
Source: Tom’s Hardware