JPMorgan Sued Over Alleged Role in $328M Crypto Liquidity Pool Scam

JPMorgan Chase is facing a lawsuit over its alleged role in facilitating a $328 million cryptocurrency fraud scheme. The victim, an investor who lost money in the scam, claims that JPMorgan failed to detect and stop suspicious activity carried out by one of its customers, Goliath Ventures.

According to investigators, Goliath Ventures' CEO, Christopher Alexander Delgado, promoted investment opportunities that promised unusually high monthly returns through crypto liquidity pools. However, it's alleged that most investor funds were never placed into these pools as advertised, but instead diverted for personal spending and to pay earlier investors.

The lawsuit argues that JPMorgan should have identified warning signs associated with Goliath Ventures' activities and verified whether the company was properly registered with financial regulators. The bank is accused of failing to conduct adequate due diligence under standard Know Your Customer (KYC) procedures before maintaining the company's accounts.