SEC Accuses Crypto Firm of $425 Million Ponzi Scheme, Founder Guilty in Separate Case

The Securities and Exchange Commission (SEC) has accused Goliath Ventures Inc. and its founder of running a $425 million Ponzi scheme.

The firm promised investors guaranteed principal and 10% monthly returns, but the SEC alleges that it invested nothing in crypto liquidity pools.

Goliath Ventures said it would pool investor money into 'liquidity pools' on decentralized platforms like Uniswap, promising monthly profits of 3% to 10%, with guaranteed principal.

The SEC claims the firm never sent any investor funds to these pools and instead operated a Ponzi scheme, using new investors' money to pay earlier ones. The agency also alleges that Goliath fabricated account balances and investment performance metrics.