SEC, CFTC Sued Over $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 firm, and its founder Christopher Delgado. The agencies allege that Goliath ran a $400 million crypto Ponzi scheme, collecting funds from over 1,300 investors under false pretenses.

The SEC claims that Goliath raised at least $425 million through an unregistered securities offering, promising monthly returns of 3% to 10%. However, the agency alleges that none of the funds or crypto assets were invested and Delgado diverted at least $51 million for personal use.

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