EP 34: Behind The Scams: Crypto Ponzi Exposed — The PGI Ponzi Scheme Behind The Scams podcast

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EP 34: Behind the Scams: Crypto Ponzi Exposed — The PGI Ponzi Scheme

7d ago 52:10

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Introduction

In this episode of Behind the Scams, Nick and Sue uncover one of the most elaborate cryptocurrency frauds in recent memory: Praetorian Group International (PGI), led by Ramil Ventura Palafox.

At its height, PGI boasted more than 90,000 investors worldwide and promised daily returns of 0.5% to 3%. In reality, it was a sophisticated Ponzi scheme that siphoned off over $200 million. Investors were lured in by flashy events, luxury cars, and fake licensing claims.

This blog-style recap dives into the details, the psychology of the scam, and the lessons you can take away to protect yourself.

A Global Ponzi Scheme Dressed as Crypto

Between 2019 and 2021, PGI pitched itself as a cutting-edge bitcoin investment platform. In reality, it was a multilevel marketing pyramid disguised as crypto trading.

The scope was staggering. Investors came not only from the United States but also from the Philippines, Canada, Australia, and Europe. Wire transfers crisscrossed between Las Vegas, the Philippines, and other international accounts.

PGI’s marketing strategy leaned on social pressure. Master distributors recruited new investors, who in turn recruited others, feeding the cycle.

The False Promise of Daily Returns

PGI guaranteed investors daily returns between 0.5% and 3%. Even at the low end, this added up to 180% annually—more than ten times the average long-term return of the S&P 500.

No legitimate investment can sustain such figures. Yet thousands believed it, reassured by PGI’s elaborate explanations about trading algorithms and pooled investor funds.

Luxury and Theatrics as a Selling Point

One of the defining features of PGI was the spectacle. Investor events in Dubai penthouses, Las Vegas suites, and yachts were designed to overwhelm skepticism. Palafox even used a cash cannon to spray money into crowds.

The forfeiture list reveals just how investor money was spent:

Over 20 high-end cars, including Ferraris, Lamborghinis, Rolls-Royces, and McLarens.
Hundreds of Hermès, Chanel, and Louis Vuitton handbags.
Jewelry and watches, including Rolexes, Cartier, and Hublot.

Every purchase was made with investor money, while victims believed their accounts were compounding daily.

Technology as a Tool of Deception

To reinforce the illusion, PGI built an online investor portal. Investors could log in and see their balances steadily increasing. The portal displayed fabricated charts and transaction histories that appeared professional and convincing.

For many, this daily reinforcement was enough to silence doubt and encourage further investment.

How It Fell Apart

By early 2021, withdrawal problems emerged. Investors were told PGI was experiencing technical difficulties with its payment processors. When delays stretched into months, Palafox reassured them with promises of new payment partners—classic “lulling statements” designed to buy time.

The reality was that PGI no longer had sufficient funds. New investor money was used to pay earlier investors while millions were siphoned into Palafox’s personal accounts.

Legal Consequences

In March 2025, prosecutors filed an indictment charging Palafox with:

Eight counts of wire fraud
Five counts of inducing interstate travel to defraud
One count of money laundering
Nine counts of unlawful monetary transactions

If convicted, he faces decades in prison.

Lessons Learned: Spotting a Crypto Ponzi

There are clear warning signs that every investor should know:

Guaranteed daily returns are a red flag.
MLM structures are not legitimate investments.
Lavish marketing events are often distractions, not proof of success.
Claims of “technical difficulties” in processing withdrawals should not be ignored.
Always verify licenses independently through regulators.

Why It Matters

The PGI case is not just about numbers—it is about human lives. Retirees, young families, and everyday investors lost their savings, homes, and futures. Many victims will recover only a fraction of what they lost.

Prevention is the only true defense. By understanding how scams like this work, you can protect yourself and those around you from becoming victims.

Indictment

The indictment relative to this ponzi scheme is attached below.

40 episodes

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