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CFTC sues Goliath Ventures over alleged $397 million Bitcoin fraud scheme

The CFTC alleges the firm took in about $397 million from roughly 1,600 customers for crypto trading, then used new deposits for fake payouts and Delgado’s personal spending.

Reported · Written up by our desk · Regulation

The U.S. Commodity Futures Trading Commission has sued Florida crypto trading firm Goliath Ventures Inc. and its chief executive, Christopher Delgado, alleging they ran a Ponzi scheme tied to Bitcoin and other cryptocurrencies.

According to the CFTC complaint filed in the U.S. District Court for the Middle District of Florida, the defendants raised at least $397 million from about 1,600 customers, promising crypto asset trading while allegedly misappropriating the funds for fictitious profits and personal luxuries.

The regulator alleges customers were guaranteed returns of principal, profits, or both, and that the company issued account statements showing gains that did not exist. The CFTC says the scheme involved using incoming money to pay earlier investors rather than conducting the promised trading.

The CFTC is seeking restitution, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction. Bitcoin Magazine also notes Delgado has already pleaded guilty in a parallel federal case, and the SEC filed a separate civil action on the same day as the CFTC complaint, with the underlying allegations still unproven.

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