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SEC and CFTC sue Goliath Ventures over alleged $400M crypto Ponzi

Regulators allege Goliath promised investors monthly returns of 3.0% to 10.0%, but did not invest funds in liquidity pools and diverted at least $51.0 million for personal use.

Reported · Written up by our desk · Regulation

The US Securities and Exchange Commission and the Commodity Futures Trading Commission filed separate civil lawsuits against Goliath Ventures and its founder, Christopher Delgado, alleging an approximately $400 million crypto Ponzi scheme.

According to the SEC, Goliath raised at least $425.0 million from more than 1,300 investors through an alleged unregistered securities offering, with investors told their money would be placed into crypto liquidity pools. The SEC said none of the funds or crypto assets were invested as promised, and that Delgado diverted at least $51.0 million for personal use.

The SEC also alleged the firm promised monthly returns of 3.0% to 10.0% generated from fees paid by traders using liquidity pools, while guaranteeing investors principal. The complaint further alleges Goliath used funds and crypto assets from new and existing investors to pay earlier investors, and it fabricated account balances and performance metrics.

Separately, the CFTC said about 1,600 customers contributed at least $397.0 million after Goliath solicited funds for crypto trading in Bitcoin and Ether. The CFTC is seeking restitution, penalties, and market bans, and Delgado has agreed to settle the SEC case, after pleading guilty on June 30 to conspiracy to commit wire fraud, wire fraud, and money laundering.

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