JPMorgan Sued Over Alleged Crypto Liquidity Pool Scheme

JPMorgan Chase is facing a lawsuit alleging it failed to detect and stop suspicious activity by one of its customers, Goliath Ventures.

The company's CEO, Christopher Alexander Delgado, was recently charged with wire fraud and money laundering related to an alleged $328 million cryptocurrency fraud scheme.

The victim claims JPMorgan should have identified warning signs associated with Goliath Ventures' activities, which included promoting investment opportunities in decentralized finance (DeFi) liquidity pools that promised unusually high monthly returns.

JPMorgan allegedly failed to conduct adequate due diligence under Know Your Customer (KYC) procedures before maintaining the company's accounts.