SEC and CFTC Target Goliath Ventures in $400M Crypto Ponzi Scheme

The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have jointly filed civil lawsuits against Goliath Ventures and its founder Christopher Delgado, accusing them of running a $400 million crypto Ponzi scheme.

The SEC's complaint alleges that Goliath raised at least $425 million from over 1,300 investors through an unregistered securities offering. Investors were promised monthly returns ranging from 3% to 10%, with guaranteed principal protection. However, the SEC claims that none of the funds or crypto assets were invested as promised.

Delgado allegedly diverted at least $51 million for personal use and used investor money to make earlier payments, recycling funds to maintain the illusion of profitability. The CFTC's complaint focuses on Goliath's solicitations for crypto trading in Bitcoin and Ether, attracting approximately 1,600 customers and at least $397 million.

The regulators are seeking remedies including restitution, disgorgement, penalties, and permanent bans. Delgado has agreed to a bifurcated settlement with the SEC, which would impose permanent bars from violating securities laws, pending court approval.