A new class-action lawsuit accuses JPMorgan Chase of helping a $328 million crypto Ponzi scheme operate for years. Investors filed the case in the U.S. District Court for the Northern District of California on March 11.
The suit claims JPMorgan “enabled” Florida-based Goliath Ventures, also known as Gen-Z Venture Firm, by providing key banking services. Lawyers argue the bank ignored obvious warning signs while thousands of investors wired money into Goliath’s accounts.
According to federal investigators, Goliath CEO Christopher Alexander Delgado oversaw the scheme from January 2023 until January 2026. He could be imprisoned for up to 30 years if he is found guilty of wire fraud and money laundering.
How the Alleged Crypto Ponzi Scheme Worked
Goliath called itself a blockchain investing company that made regular profits by using “cryptocurrency liquidity pools.” Investors were informed that they could make “guaranteed” monthly earnings of 3 to 8 percent with little risk.
Court documents say that during the fraud, about 2,000 investors sent Goliath more than $328 million. But investigators claim that just $1 to $1.5 million ever made it to actual crypto sites.
Instead, authorities say that Goliath utilized new deposits to pay off old investors and pay for lavish things, including real estate, parties, trips, and cars. When other investors tried to take out money in late 2025, the company stopped working, cut off access to the site, and the structure started to fall apart.
JPMorgan’s Alleged Role and Red Flags
The lawsuit says Goliath moved about $253 million through a JPMorgan business account between 2023 and 2025. Around $123 million then went from that account to a Coinbase wallet in Goliath’s name, supposedly to enter liquidity pools.
Plaintiffs argue the bank should have spotted suspicious activity, such as large round-number wires, fast in-and-out transfers, and heavy payments to Delgado and his companies. They also say Goliath’s stated business model did not match its actual transaction patterns over time.
The complaint claims JPMorgan “aided and abetted” the fraud by failing to freeze accounts or report the behavior despite these red flags. It compares the case to earlier litigation over the bank’s ties to Bernie Madoff, where JPMorgan later agreed to major settlements with investors.
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