CFTC Cracks Down on $397M Ponzi Scheme Involving Fake Crypto Trading

The Commodity Futures Trading Commission (CFTC) has filed a complaint against Goliath Ventures Inc. and its CEO, Christopher Delgado, alleging they ran a Ponzi scheme that took at least $397 million from 1,600 customers for fake crypto trading.

According to the CFTC, the defendants misrepresented themselves as legitimate crypto traders, soliciting funds from the public for bitcoin and ether trading. However, instead of investing customer funds in actual trades, they misappropriated all customer funds and paid fictitious profits to existing customers.

The complaint also alleges that Delgado used customer funds to fund his lavish lifestyle and falsely guaranteed the return of principal investments or profits to customers. The defendants issued false account statements showing nonexistent profits to maintain the illusion of legitimate trading activity.

The CFTC is seeking restitution, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations.