CEO Admits Guilt in Massive $200M Bitcoin Scam That Tricked 90,000 Investors With Bogus 3% Daily Returns

Another day, another crypto CEO learns how federal handcuffs feel.

The $200M Mirage

Promised investors the moon—3% daily returns, to be exact. Delivered nothing but empty wallets and broken dreams. The scheme hooked 90,000 hopefuls before regulators finally stepped in.

Math That Never Math-ed

Let’s be real—consistent 3% daily returns? That’s not investing; that’s fantasy football with real money. Even Buffett wouldn’t dare promise that. Yet thousands poured cash in, blinded by crypto’s get-rich-quick aura.

Justice Slowly Catches Up

The guilty plea marks a rare win for oversight in the Wild West of digital assets. Shows even flashy CEOs can’t outrun the law forever—though they sure can delay it.

Another cautionary tale in an industry that’s equal parts revolution and rinse-repeat scandal. Maybe someday investors will learn that if it sounds too good to be true, it’s probably a fraud—especially in crypto.

Fake Bitcoin Trading Guru Stole $62M for Lambos & Penthouses

Palafox claimed that PGI was engaged in high-volume bitcoin trading and promised investors daily returns of 0.5 to 3%. According to prosecutors, PGI did not operate at a level capable of delivering such profits. Instead, Palafox used funds from new investors to pay earlier ones, the hallmark of a Ponzi scheme.

To keep the scheme running, Palafox launched an investor portal that displayed fabricated account growth. The system showed participants their investments were gaining value, reinforcing the illusion of security and profitability.

Court documents show that Palafox diverted millions of dollars in investor funds for personal use. He spent about $3 million on 20 luxury vehicles, including Lamborghini, Ferrari, Porsche, McLaren, Bentley, and BMW models.

He also purchased four homes in Las Vegas and Los Angeles worth more than $6 million, paid $329,000 for penthouse hotel stays, and spent another $3 million on clothing, watches, jewelry, and furnishings from high-end retailers such as Cartier, Rolex, Gucci, and Hermes.

Palafox also transferred at least $800,000 in cash and 100 bitcoin, then worth $3.3 million, to a family member.

Although PGI raised more than $201 million, prosecutors said victims collectively lost at least $62.7 million. Many investors were left without access to their funds after the scheme collapsed in late 2021.

As part of his plea agreement, Palafox has now agreed to pay the $62.7 million in restitution to victims. Victims are expected to check for updates on the Justice Department’s official website.

In addition, Palafox will be sentenced on February 3, 2026, before the U.S. District Judge Leonie M. Brinkema. He faces a maximum of 40 years in prison but is expected to receive less under federal sentencing guidelines.

Ramil Ventura Palafox’s Case Adds to the Growing List of Crypto Ponzi Scheme

Earlier this month, Nathan Fuller, owner of Privvy Investments, was denied bankruptcy protection after a Texas court ruled he ran a Ponzi scheme, hid assets, and lied under oath. The U.S. Trustee Program secured a default judgment blocking his bid to erase $12.5 million in debts, leaving him personally liable.

Also this month, Kevin Spacey’s new film, Holiguards Saga—The Portal of Force, is linked to controversy as co-writer and actor Vladimir Okhotnikov faces U.S. charges over a $340 million crypto Ponzi scheme tied to Forsage.

Meanwhile, the CFTC secured a $228.6 million judgment against pastor Eddy Alexandre, who defrauded 25,000 investors of $262 million through his crypto Ponzi scheme EminiFX. Similar to Palafox, he promised 5–10% weekly returns using a fake “robo-advisor” system and is already serving nine years for commodities fraud.

CFTC wins $228M judgment against pastor who ran crypto Ponzi promising 5-10% weekly returns, defrauding 25,000 investors.#Ponzi #Cryptohttps://t.co/2eLsOeMuMg

The lists of crypto Ponzi schemes are endless. In August, Estonians Sergei Potapenko and Ivan Turõgin were sentenced to time served for the $577 million HashFlare Ponzi scheme, ordered to pay fines, perform community service, and forfeit $450 million in assets.