The US Department of Justice (DOJ) announced a conviction in a case related to cryptocurrencies.
Accordingly, the DOJ announced that Ramil Ventura Palafox, CEO of Praetorian Group International (PGI), has been sentenced to 20 years in prison for a $200 million Bitcoin (BTC) Ponzi scheme.
The DOJ statement indicated that more than 90,000 investors were defrauded due to Bitcoin Ponzi schemes.
Authorities also stated that victims lost at least $62.7 million, and that Palafox used the money for luxury cars, real estate, and personal expenses.
Palafox was also accused of defrauding investors by promising daily returns of 0.5% to 3% on Bitcoin trading.
Palafox reportedly used investor funds for personal luxury spending, including approximately $3 million for 20 high-end vehicles, $329,000 for luxury hotel penthouse apartments, over $6 million for four homes in Las Vegas and Los Angeles, and another $3 million for designer clothing, watches, jewelry, and furniture from retailers such as Gucci, Cartier, Rolex, and Hermès.
He also reportedly transferred at least $800,000 in cash and 100 BTC, worth $3.3 million at the time, to a family member.
Palafox agreed to pay $62.7 million in damages as part of the settlement. The Justice Department statement also noted that victims may be eligible for compensation through the Federal Bureau of Investigation (FBI).
*This is not investment advice.