SEC and CFTC Sue Firm Over Alleged $400M Crypto Ponzi Scheme

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have filed separate civil complaints against Goliath Ventures, a cryptocurrency investment firm, over an alleged Ponzi scheme that raised approximately $400 million from investors.

The SEC alleges that Goliath Ventures used new investor funds to pay promised returns to earlier investors, rather than investing the money as claimed. The agency further claims that founder Christopher Delgado personally diverted at least $51 million for his own use.

This case serves as a stark reminder of the risks associated with unregulated investment opportunities in the cryptocurrency space, and regulators have repeatedly warned that schemes promising high returns with little or no risk are often fraudulent.