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Investors have filed a proposed class action against
JPMorgan in the US District Court for the Northern District of California,
alleging the bank enabled a $328 million cryptocurrency Ponzi scheme run by the
now-defunct Goliath Ventures.
The lawsuit claims JPMorgan ignored suspicious transactions
and allowed Goliath to use its banking infrastructure to collect investor funds,
Cointelegraph reported.
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According to the complaint: “Chase, by virtue of its Know
Your Customer procedures, actually knew that Goliath was acting as a ‘private
equity’ cryptocurrency pool operator investing money for investors, without
being licensed at all to sell these investments.”
Goliath Crypto Scheme Routed Through Banks
From January 2023 through May or June 2025, JPMorgan served
as Goliath’s sole banking institution. Roughly $253 million of investor
funds—about two-thirds of the total raised—was deposited into JPMorgan’s 0305
account, with around $123 million subsequently transferred to
Goliath-controlled wallets at Coinbase.
Goliath also held business accounts at
Bank of America, where CEO Christopher Delgado was a co-signatory, and investor
funds were occasionally routed there as well.
📌UPDATE: JPMORGAN SUED FOR ALLEGEDLY ENABLING $328M CRYPTO PONZI SCHEMEInvestors have filed a lawsuit accusing JPMorgan of facilitating a $328 million crypto Ponzi scheme tied to Goliath Venture. The suit alleges the bank processed fraudulent transactions and failed to flag… pic.twitter.com/cwvIj3TYAG
— BSCN (@BSCNews) March 12, 2026
Goliath CEO Arrested, Investors File Lawsuit
A separate criminal complaint from the US Attorney’s Office
for the Middle District of Florida states that Delgado, who previously ran
Goliath under the name Gen-Z Venture Firm, was arrested earlier.
Prosecutors said the scheme operated from January 2023 through January 2026.
Delgado faces up to 30 years in federal prison if convicted.
The class action was filed by Shaw Lewenz, Sonn Law Group,
and Schwartzbaum. The first plaintiff, Robby Alan Steele, said he invested
$650,000, including retirement funds. Jordan Shaw of Shaw Lewenz said
additional complaints are expected as the team continues identifying victims.
Crypto Fraud Concerns Persist
The JPMorgan case highlights concern over cryptocurrency
fraud in the United States. A recent survey by verification firm Sumsub found
that roughly one
in three Americans have experienced or know someone affected by
crypto-related scams.
Common schemes include Ponzi structures, social engineering,
phishing, impersonation, and wallet exploitation. Synthetic identity and
deepfake-related fraud have also risen sharply.
Trust in crypto platforms remains lower than traditional
financial services, and most respondents support stronger regulation to improve
consumer protection.
This article was written by Tareq Sikder at www.financemagnates.com. and include conclusion section that’s entertaining to read. do not include the title. Add a hyperlink to this website [http://defi-daily.com] and label it “DeFi Daily News” for more trending news articles like this
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