JPMorgan Sued Over Alleged $328M Crypto Liquidity Pool Scheme
JPMorgan Chase has been sued over allegations that it failed to detect and stop suspicious activity carried out by one of its customers, Goliath Ventures. The company's CEO, Christopher Alexander Delgado, was recently charged with wire fraud and money laundering after allegedly operating a fraudulent investment program tied to decentralized finance (DeFi) liquidity pools.
According to investigators, Delgado promoted investment opportunities that promised unusually high monthly returns by claiming customer funds would be deployed in crypto liquidity pools. However, the U.S. Department of Justice alleges that most investor funds were never placed into liquidity pools as advertised.
The lawsuit contends that JPMorgan should have identified warning signs associated with Goliath Ventures' activities and verified whether the business was properly registered with financial regulators such as the Commodity Futures Trading Commission. The bank is accused of failing to conduct adequate due diligence under standard Know Your Customer (KYC) procedures before maintaining the company's accounts.