- A class action filed in California accuses JPMorgan Chase of aiding a US$328 million crypto Ponzi scheme run by Goliath Ventures, alleging the bank ignored clear warning signs.
- Approximately US$253 million flowed through a single JPMorgan account, with US$123 million, transferred directly to Coinbase wallets.
- Goliath Ventures CEO Christopher Delgado was arrested in February on federal wire fraud and money laundering charges carrying up to 30 years in prison.
Investors have filed a proposed class action against JPMorgan Chase, alleging the investment bank enabled a US$328 million (AU$460 million) cryptocurrency Ponzi scheme run by now-defunct Goliath Ventures by allowing suspicious transactions to move through accounts it controlled.
Filed on March 11 in federal court in Northern California, the suit centers on the bank’s role in handling money tied to Goliath Ventures, a firm that prosecutors say raised funds from more than 2,000 investors through supposed crypto liquidity pool strategies.
The plaintiffs argue JPMorgan was not a peripheral service provider but the main banking conduit for the operation.
Read more: US Inflation Unchanged in February as Bitcoin Holds $70K
Some Red Flags the Bank Allegedly Ignored
The complaint says account activity showed warning signs consistent with investment fraud. It points to heavy movement of funds, deposits from multiple investors being mixed together, and repeated transfers among related accounts.
It also alleges there was little evidence of legitimate business income supporting the returns investors were told they were earning.
One account at JPMorgan allegedly processed about US$253 million (AU$354 million) between January 2023 and June 2025. The filing says around US$123 million (AU$172 million) went to Coinbase, while about US$50 million (AU$70 million) was sent to investors as supposed profits.
The lead plaintiff, Robby Alan Steele, said he invested US$650,000 (AU$910,000), including retirement savings. The lawsuit includes claims for aiding and abetting fraud, negligence, unjust enrichment and violations of California’s unfair competition law. Lawyers for the plaintiffs said additional complaints against other parties are expected.
The civil case follows criminal charges against Goliath Ventures chief executive Christopher Alexander Delgado, 34, of Apopka, Florida. Federal prosecutors accuse him of wire fraud and money laundering in connection with what they describe as a scheme that ran from January 2023 to January 2026.
Delgado was arrested on Feb. 24 and later released on a US$1 million (AU$1.4 million) bond. He faces a maximum sentence of 30 years if convicted. The criminal investigation is being led by IRS Criminal Investigation and Homeland Security Investigations, with the case prosecuted in the Middle District of Florida.
Related: Mastercard Expands Crypto Push With New Network Integrating Binance and Ripple
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