SEC and CFTC Sue Goliath Ventures for Alleged $400M Crypto Ponzi Scheme

The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have filed separate civil lawsuits against Goliath Ventures, a cryptocurrency investment firm, and its founder Christopher Delgado. The agencies allege that Goliath ran a massive crypto Ponzi scheme that raised around $400 million from over 1,300 investors.

The SEC claims that Goliath promised investors monthly returns of 3% to 10%, generated from fees paid by traders using its liquidity pools, while guaranteeing their principal. However, the agency alleges that the company used funds and crypto assets from new and existing investors to pay earlier investors and fabricated account balances and performance metrics.

The CFTC says approximately 1,600 customers contributed at least $397 million after Goliath solicited funds for crypto trading in Bitcoin and Ether. The agency is seeking restitution, disgorgement, civil penalties, trading and registration bans, and a permanent injunction.

In a separate development, Delgado has agreed to settle with the SEC, subject to court approval. He would be permanently barred from violating securities-law provisions charged in the complaint and would also be barred from participating in securities transactions outside personal-account activity and from associating with a broker or dealer.