JPMorgan Sued Over Alleged $328M Crypto Liquidity Pool Scam

JPMorgan Chase has been named in a lawsuit related to an alleged $328 million cryptocurrency fraud scheme.

The complaint, filed this week in federal court in San Francisco, accuses JPMorgan of allowing Goliath Ventures to use its banking services while allegedly 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.

The alleged scheme involved investors being promised unusually high monthly returns by claiming customer funds would be deployed in crypto liquidity pools, automated pools of digital assets commonly used in DeFi trading platforms to facilitate token swaps and generate yield.