JPMorgan Sued Over Alleged Crypto Liquidity Pool Fraud Scheme
JPMorgan Chase has been named in a lawsuit connected to an alleged $328 million cryptocurrency fraud scheme. The complaint, filed this week in federal court in San Francisco, accuses the bank of failing to detect and stop suspicious activity carried out by one of its customers.
The victim alleges that JPMorgan allowed Goliath Ventures to use its banking services while allegedly operating a fraudulent investment program tied to decentralized finance (DeFi) liquidity pools. The firm's chief executive, Christopher Alexander Delgado, was recently charged with wire fraud and money laundering.
According to investigators, Delgado promoted investment opportunities that promised unusually high monthly returns by claiming customer funds would be deployed in crypto liquidity pools. However, the U.S. Department of Justice alleges that most investor funds were never placed into liquidity pools as advertised.