JPMorgan sued over $328M crypto Ponzi scheme
6.7 Regulation JPMorgan faces lawsuits for allegedly enabling a $328M crypto Ponzi scheme by Goliath Ventures, accused of ignoring suspicious activity and causing major investor losses.
JPMorgan Chase is facing multiple proposed class-action lawsuits in the U.S. District Court for the Northern District of California. Investors allege the bank enabled a $328 million cryptocurrency Ponzi scheme orchestrated by Goliath Ventures. The lawsuits claim JPMorgan provided essential banking services and overlooked warning signs, such as suspicious transaction patterns and large, irregular fund flows, which should have triggered stricter anti-money laundering (AML) measures. Goliath Ventures, led by Christopher Alexander Delgado, allegedly promised investors guaranteed monthly returns from crypto liquidity pools. Investigators report that only a small portion of funds reached actual crypto platforms, with most new deposits used to pay earlier investors and cover extravagant expenses. Court filings reveal over $253 million was deposited into JPMorgan accounts, with $123 million transferred to Coinbase wallets. Plaintiffs argue that JPMorgan's compliance failures and inadequate monitoring allowed the scheme to persist, causing significant losses for thousands of investors. The lawsuits seek compensation for victims and the return of banking fees collected from fraudulent accounts.
