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CEO sentenced to 20 years for $200M Bitcoin Ponzi scheme

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U.S. sentences crypto scam mastermind to 20 years over $73M fraud

A U.S. federal court has sentenced the chief executive of a crypto trading and multi-level marketing firm to 20 years in prison for orchestrating a massive Bitcoin-based Ponzi scheme that defrauded tens of thousands of investors worldwide.

Summary

  • Ramil Ventura Palafox, CEO of Praetorian Group International, was sentenced to 20 years in prison for running a $200 million Bitcoin Ponzi scheme.
  • Prosecutors said the scheme defrauded more than 90,000 investors worldwide, promising daily returns of up to 3% through supposed crypto trading.
  • The U.S. Department of Justice said investor funds were misused for personal expenses, with no legitimate trading activity backing the returns.

Bitcoin Ponzi scheme CEO sentenced to 20 years

Ramil Ventura Palafox, 61, former CEO and Chairman of Praetorian Group International (PGI), received the sentence Thursday after being convicted on multiple federal charges, including wire fraud and money laundering.

According to court documents, Palafox used PGI to lure more than 90,000 investors into a purported Bitcoin (BTC) trading program that promised daily returns of 0.5% to 3%.

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Prosecutors said the program never engaged in genuine trading, instead, returns were paid with funds from new investors, a classic Bitcoin Ponzi scheme.

Victims from around the world collectively invested more than $200 million, with documented losses exceeding tens of millions for many individuals.

Government filings show Palafox made lavish personal purchases with investor money, which reportedly included luxury cars, high-end designer goods and real estate. Earlier reports in the case revealed that millions flowed into personal expenses rather than investment activity, exacerbating investors’ losses.

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“He spent approximately $3 million on 20 luxury vehicles, including automobiles by Porsche, Lamborghini, McClaren, Ferrari, BMW, Bentley, and others. Palafox spent approximately $329,000 on penthouse suites at a luxury hotel chain and purchased four homes in Las Vegas and Los Angeles worth more than $6 million. Palafox spent another $3 million of investors’ money to buy clothing, watches, jewelry, and home furnishings at luxury retailers, including Louboutin, Neiman Marcus, Gucci, Versace, Ferragamo, Valentino, Cartier, Rolex, and Hermes, among others,” the DoJ statement said.

Palafox initially pleaded guilty in September 2025 to fraud and money laundering charges, acknowledging his role in the Bitcoin Ponzi scheme that operated between December 2019 and October 2021.

The FBI’s Washington Field Office and IRS Criminal Investigation Division assisted in the case, and some victims have already been granted restitution orders. Efforts continue to track down remaining assets to repay those defrauded.

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Qzino Introduces Token-Based Revenue Model for Web3 iGaming Platform

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Qzino Introduces Token-Based Revenue Model for Web3 iGaming Platform

[PRESS RELEASE – Valletta, Malta, February 13th, 2026]

Qzino, a Web3-based crypto casino platform, has officially launched, introducing an ecosystem that integrates profit-sharing mechanisms, token-based rewards, and a broad gaming offering. The platform provides access to more than 10,000 games, including proprietary Qzino Originals, and incorporates token utility into its operational model.

Positioned as an alternative to traditional online casinos, Qzino integrates a revenue participation structure through its native QZI token. The token is designed to function as a profit-sharing mechanism within the platform’s ecosystem, allowing holders to receive distributions linked to overall platform performance, including during periods when they are not actively playing.

Simple and Transparent Profit-Sharing Model

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QZI functions as a participation token within the Qzino ecosystem. According to the project, the token is structured to enable holders to receive distributions tied to the platform’s performance.

The model includes:

  • Allocation of 30% of Qzino’s Net Gaming Revenue (NGR) to eligible participants
  • A staking mechanism under which 3% of the staking pool is distributed daily to QZI holders

Under this structure, rewards may be generated both through platform activity and through token holding. The distribution framework is designed to operate according to predefined parameters outlined by the project.

Staking Mechanism and Token Supply Structure

The Qzino ecosystem incorporates a token model centered on mining and staking mechanisms. The QZI token has a capped total supply of 7,777,777,777 tokens and follows a predefined distribution framework outlined by the project.

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Through the staking mechanism, eligible participants may receive daily distributions from the platform’s staking pool, subject to the platform’s terms and performance. The structure is designed to support ongoing token utility within the ecosystem and to align participation incentives with platform activity over time.

Cashback and Rakeback Program

Qzino includes a structured cashback and rakeback program as part of its platform model. According to the project, the system is designed to provide ongoing rewards tied to user activity.

The program includes:

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  • Cashback of up to 40%, distributed twice weekly, subject to platform terms
  • Rakeback of up to 15%, calculated automatically and applied to eligible bets

These mechanisms are integrated into the platform’s broader rewards structure and form part of its operational framework within the crypto iGaming sector.

Integrated Mining Mechanism

At launch, Qzino includes a built-in mining mechanism integrated into platform activity. The system enables users to accumulate QZI tokens through participation, without requiring external hardware or specialized technical setup.

According to the project, the mining framework is designed to distribute tokens through user engagement prior to the activation of additional features such as profit-sharing and staking. The mechanism forms part of the platform’s broader token distribution model within its ecosystem.

Sports Betting Coming to Qzino

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In addition to its casino offering, Qzino plans to integrate sports betting into the platform. The feature is intended to allow users to place cryptocurrency-based bets on major international sporting events.

According to the project, sports betting activity will be incorporated into the existing rewards framework, including cashback, rakeback, and token-based mechanisms. With this addition, Qzino aims to broaden its platform scope beyond casino gaming to include multiple forms of crypto-based betting within a single ecosystem.

AI-Supported Tools and Platform Accessibility

Qzino incorporates AI-based tools designed to support user experience within the platform. These tools assist with functions such as personalized game recommendations, basic analytics, and navigation, while gameplay decisions remain user-directed.

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The platform is mobile-responsive, supports multiple languages, and is accessible to users in various jurisdictions, subject to local regulations. According to the project, registration is streamlined, KYC requirements are limited, and deposits and withdrawals are processed in cryptocurrency.

Affiliate Program and Market Positioning

In parallel with its player-facing features, Qzino has introduced a global affiliate program aimed at crypto-focused influencers, communities, and media partners. The program offers revenue share of up to 35%, including sub-affiliate commissions, with real-time performance tracking. Additional components include token-based incentives, airdrop campaigns, and free-to-play funnels, as outlined by the project.

“Our mission with Qzino is to create a platform where players don’t just gamble — they participate,” said Matero, Co-Founder of Qzino. “By combining profit-sharing, staking, and industry-leading cashback, we’re building an ecosystem where users genuinely benefit from the platform’s growth.”

The launch takes place amid continued growth in the crypto iGaming sector, particularly among platforms emphasizing transparency and blockchain-based mechanics. By combining gaming services with token-based participation models, Qzino seeks to establish a presence within the evolving Web3 gaming landscape.

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For more information about Qzino and to join the platform, users can visit www.qzino.com.

About the Project

Qzino is a Web3-based crypto gaming platform designed to combine casino entertainment with tokenized revenue participation. Built around the QZI token, the project integrates profit-sharing, staking, mining mechanics, and a loyalty-driven rewards system into a single ecosystem.

The platform provides access to over 10,000 games, including proprietary Qzino Originals, with sports betting integration underway. By aligning platform growth with token holder participation, Qzino aims to introduce a sustainable, community-oriented model within the evolving crypto iGaming sector.

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China’s Baidu adds OpenClaw AI into search app for 700 million users

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Nvidia’s Huang to visit China as AI chip sales stall

Chinese tech company Baidu, best known for its search engine, also operates cloud, mapping and other internet-based services.

Bloomberg | Bloomberg | Getty Images

BEIJING — Baidu plans to give users of its main smartphone app direct access to the wildly popular artificial intelligence tool OpenClaw, according to a spokesperson for the Chinese tech company.

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Starting later on Friday, users who opt in can message the AI agent through Baidu’s main search app to complete tasks such as scheduling, organizing files and writing code.

AI agents such as OpenClaw have surged in popularity recently for their ability to automate tasks, including managing email and using online services.

Previously, the Austrian-developed open-sourced AI agent could only be accessed from chat apps such as WhatsApp or Telegram. Chinese companies such as Alibaba, Tencent and Baidu have already allowed users to run OpenClaw on their cloud systems.

Baidu claims 700 million monthly active users for its search app. The company is also rolling out OpenClaw’s capabilities to its e-commerce business and other services.

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The rollout comes just days ahead of China’s Lunar New Year holiday, as Chinese internet tech giants race to attract new users and monetize their AI investments.

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Alibaba has also integrated its e-commerce platforms, such as Taobao and travel site Fliggy, with its AI chatbot Qwen, and claimed it received more than 120 million consumer orders through the app in the six days through Feb. 11.

Qwen users can compare personalized product recommendations before completing payment through Alipay — all within the chatbot. Previously, the AI tool could suggest products based on prompts, but shoppers had to leave the app and navigate multiple platforms to complete their transactions.

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Despite growing interest in AI agents such as OpenClaw, cybersecurity firms including CrowdStrike have warned the public about granting OpenClaw unfettered access to enterprise systems.

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Boerse Stuttgart Digital Merges With Tradias In Crypto Push

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Boerse Stuttgart Digital Merges With Tradias In Crypto Push

Boerse Stuttgart Group, operator of one of Europe’s largest stock exchanges, said it will merge its cryptocurrency business with Frankfurt-based digital asset trading firm Tradias in a strategic move to expand its presence in institutional crypto markets.

The transaction will consolidate about 300 employees under a joint management team from both companies, according to a Friday announcement.

The combined unit aims to cover multiple digital asset services, including brokerage, trading, custody, staking and tokenized assets. It will serve banks, brokers and other financial institutions across Europe, providing fully regulated crypto infrastructure, the announcement said.

Financial terms of the deal were not disclosed. Boerse Stuttgart and Tradias representatives declined to comment to Cointelegraph on the deal’s terms. Bloomberg reported the transaction could value Tradias at about 200 million euros ($237 million) and the combined entity at more than $590 million.

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MiCA-compliant crypto custodian joins forces with BaFin-licensed bank

Boerse Stuttgart has been developing its regulated crypto infrastructure through its Boerse Stuttgart Digital arm, which provides trading, brokerage and custody services in accordance with the European Union’s Markets in Crypto-Assets Regulation (MiCA).

In 2025, Boerse Stuttgart reported tripling crypto trading volumes, accounting for a quarter of its total revenue in 2024. CEO Matthias Voelkel expressed a bullish stance on crypto and disclosed personal Bitcoin (BTC) holdings at the time.

The platform’s existing footprint in regulated digital assets positions the exchange group to expand offerings by combining technology with Tradias’ execution capabilities.

Operating as the digital assets arm of Bankhaus Scheich, Tradias is licensed as a securities trading bank by the German Federal Financial Supervisory Authority (BaFin).

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“With the planned merger of Boerse Stuttgart Digital and Tradias, Boerse Stuttgart Group is driving the development and consolidation of the European crypto market,” Voelkel said.

Related: Denmark’s Danske Bank allows clients to buy Bitcoin and Ether ETPs

“We have built strong growth momentum in recent years. By merging with Boerse Stuttgart Digital, we will take the next logical step in our corporate development,” Tradias founder Christopher Beck noted, adding:

“Together, we will cover the entire value chain for digital assets and create a new European champion with significantly greater reach, strategic depth, and creative power for further market consolidation.”

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