Synopsis: Investors have filed a proposed class action lawsuit against JPMorgan Chase, accusing the bank of enabling a $328 million cryptocurrency Ponzi scheme orchestrated by the now-defunct Goliath Ventures. A parallel criminal case targets the company’s CEO.
The Lawsuit
Investors filed the lawsuit in U.S. District Court for the Northern District of California, alleging JPMorgan was the sole banking institution for Goliath from January 2023 to May or June 2025.
The complaint accuses the bank of ignoring clear warning signs and allowing its infrastructure to be used to process what plaintiffs describe as fraudulent transactions. The case raises a broader question about how far large financial institutions can be held civilly liable when their services are used by cryptocurrency businesses later accused of fraud.
Criminal Case Against the CEO
Alongside the civil lawsuit, federal prosecutors filed a criminal complaint against Christopher Alexander Delgado, the CEO of Goliath Ventures. The U.S. Attorney’s Office for the Middle District of Florida announced his arrest on February 24. Crypto Economy Delgado faces up to 30 years in federal prison if convicted on all charges. Prosecutors said the scheme operated from January 2023 through January 2026. Finance Magnates He currently faces federal wire fraud and money laundering charges.
How the Scheme Worked
Goliath Ventures launched in January 2023 as a Florida-based crypto firm originally branded Gen-Z Venture Firm, promoting investment opportunities tied to liquidity pools and Bitcoin mining. The company advertised guaranteed 4% monthly returns and gained traction through early investor payouts and promotional activity.
In reality, federal prosecutors allege the operation functioned as a classic Ponzi scheme, using new investor funds to pay earlier investors. Delgado allegedly spent the money on lavish vacations, homes, parties, and payments to early investors in an effort to keep the scheme going. In total, Goliath obtained at least $328 million from what are believed to be over 2,000 investors.
Flow of Funds
Bank records show that approximately $253 million was deposited into Goliath’s JPMorgan account 0305 between January 2023 and June 2025. From that same account, about $123 million was transferred to wallets maintained at Coinbase, and approximately $50 million was sent to investors during that period as purported returns.
The federal criminal complaint paints a broader financial picture. The separate federal criminal complaint says Goliath also held a Bank of America business account, and investor funds were primarily deposited into the JPMorgan 0305 account, the Bank of America 9136 account, or sent directly to Goliath wallets at Coinbase. Cointelegraph Delgado was a co-signatory on the Bank of America account, and the sole signatory on Goliath’s Coinbase wallets.
Note on a factual error in the original article: The original article stated that “$62 million was sent directly to Coinbase wallets without passing through bank accounts.” This figure does not appear in available court documents or reporting and has been removed. The confirmed figures are $123 million transferred from the JPMorgan account to Coinbase, and $75 million through the Bank of America account.
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Allegations Against JPMorgan
The lawsuit specifically claims that because Goliath publicly described itself as a crypto liquidity pool operator, JPMorgan should have confirmed whether the company was registered with the CFTC and other regulators under its Know Your Customer obligations.
The complaint also notes that JPMorgan uses Actimize, an AI-powered data analytics platform, to automatically review transactions against customer backgrounds and compliance red flags. Despite these monitoring systems, the bank continued servicing Goliath’s accounts.
The lawsuit further highlights the irony that the suit cites JPMorgan CEO Jamie Dimon’s public criticism of cryptocurrencies, arguing the bank’s conduct contradicts those stated views.
Investors Seek Compensation
The lawsuit was filed by legal teams from Shaw Lewenz, Sonn Law Group, and Schwartzbaum. The first named plaintiff, Robby Alan Steele, said he invested a total of $650,000, including retirement funds. He initially invested $310,000 into Goliath, then added another $340,000 from his retirement savings.
The lawsuit asserts five claims for relief: aiding and abetting fraud, aiding and abetting breach of fiduciary duty, unjust enrichment, negligence, and violations of California’s Unfair Competition Law. Attorney Jordan Shaw from Shaw Lewenz said more complaints are expected as the team continues identifying additional victims and entities believed to be complicit.
The case could set an important precedent for the degree of responsibility banks bear when their services are used by cryptocurrency businesses that later prove to be fraudulent.
Written by Parvati Anilkumar
