JPMorgan Accused of Allowing $328M Crypto Fraud Scheme Through Banking Services
JPMorgan Chase has been accused of failing to detect and stop suspicious activity carried out by one of its customers, leading to an alleged $328 million cryptocurrency fraud scheme.
The complaint, filed in federal court in San Francisco, alleges that JPMorgan allowed a company called Goliath Ventures to use its banking services while operating a fraudulent investment program tied to decentralized finance (DeFi) liquidity pools.
Federal prosecutors recently charged the firm's chief executive, Christopher Alexander Delgado, with wire fraud and money laundering. Delgado allegedly promoted investment opportunities that promised unusually high monthly returns by claiming customer funds would be deployed in crypto liquidity pools, but most investor funds were never placed into these pools as advertised.