SEC Claims $198 Million Ponzi Scheme Linked to Praetorian Group International Corp.

The SEC has accused Praetorian Group International Corp. of running a $198 million Ponzi and pyramid scheme under the guise of a cryptocurrency and forex trading company. Founder Ramil Ventura Palafox misused funds generated from investor membership packages to benefit himself and his associates, rather than invest them as promised.

The Securities and Exchange Commission (SEC) has filed a complaint against Praetorian Group International Corp., alleging that it perpetrated a Ponzi and pyramid scheme that defrauded investors of $198 million. The scheme involved selling “membership packages” in a fake cryptocurrency and foreign exchange trading enterprise. Instead of investing the funds, the operator, Ramil Ventura Palafox, allegedly redirected approximately $57 million to his family and accomplices, using investor funds to pay returns to earlier investors.

The SEC’s investigation revealed that Palafox marketed memberships by promising substantial returns, leveraging a false narrative of a successful trading platform. This misrepresentation encouraged new investments, while older investors were paid with the proceeds from new memberships, characteristic of a Ponzi scheme. The SEC’s complaint seeks to hold Palafox accountable and aims to recover funds for the affected investors, highlighting the need for vigilance in crypto and forex investments.