JPMorgan faces legal action over claimed involvement in $328M cryptocurrency fraud operation
A class action lawsuit claims JPMorgan facilitated transactions in a massive $328 million cryptocurrency Ponzi operation, as federal prosecutors separately pursue criminal charges against the founder of Goliath Ventures.
A lawsuit has been filed against JPMorgan alleging the banking giant facilitated a $328 million cryptocurrency Ponzi operation orchestrated by the now-defunct entity Goliath Ventures.
A proposed class action was submitted Tuesday to the US District Court for the Northern District of California by investors who claim JPMorgan turned a blind eye to questionable financial activity and permitted Goliath to leverage its banking infrastructure for gathering capital from investors.
According to the legal filing, JPMorgan CEO Jamie Dimon has been an outspoken critic of Bitcoin (BTC) over the years, yet the bank purportedly allowed cryptocurrency fraudsters to conduct illicit wire transfers through its systems.
Chase, by virtue of its Know Your Customer 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.
Court complaint
Complaint focuses on JPMorgan account flows
Christopher Delgado, the CEO of Goliath, was apprehended according to an announcement from the US Attorney's Office for the Middle District of Florida on Feb. 24. Should he be found guilty on every charge, Delgado could face up to 30 years behind bars in a federal penitentiary.
According to federal prosecutors, the fraudulent operation was conducted by Goliath Ventures, which previously operated under the name Gen-Z Venture Firm, spanning from January 2023 to January 2026.
According to the civil lawsuit, JPMorgan served as Goliath's exclusive banking partner during the period stretching from January 2023 until May or June 2025. The legal complaint states that "Goliath obtained at least $328 million from what are believed to be over 2,000 investors."
The legal filing additionally outlines how funds were transferred from an account held at JPMorgan to cryptocurrency wallets belonging to Goliath that were maintained at Coinbase.
According to the allegations, during the timeframe of January 2023 through June 2025, approximately $253 million in deposits flowed into the bank's account ending in 0305, representing nearly two-thirds of the complete $328 million that investors are said to have contributed. From that amount, about $123 million was sent to Goliath's cryptocurrency wallets that were held with Coinbase.
US complaint also names Bank of America account
A distinct criminal complaint that was filed by federal authorities indicates that Goliath maintained business banking accounts with Bank of America as well.
According to the Feb. 20 complaint, "Delgado was a co-signatory on the BOA 9136 account in the name of Goliath," and the document notes that directors at Goliath informed at least one investor that this account was under Delgado's control.
The criminal complaint provided additional details explaining that capital transmitted by investors was predominantly deposited into the JPMorgan account ending in 0305 or the Bank of America account ending in 9136, or the funds were sent directly to cryptocurrency wallets controlled by Goliath at Coinbase.
According to the government's filing, Delgado held sole signing authority on the Coinbase wallets registered to Goliath.
More complaints are coming as the team is still identifying victims
The legal complaint was submitted by a legal team comprising attorneys from Shaw Lewenz, Sonn Law Group and Schwartzbaum. The lead plaintiff identified in the case, Robby Alan Steele, claims he committed a total investment of $650,000, which included funds from his retirement accounts.
Jordan Shaw from Shaw Lewenz indicated that additional legal complaints will be forthcoming, explaining that the legal team continues working to identify individuals and organizations they suspect played a role in the scheme.
We are being purposeful and precise in who we file against, to be complementary to the receiver and his efforts. The goal is not to duplicate efforts, but instead to maximize recovery.
Jordan Shaw, Shaw Lewenz