JPMorgan hit with class-action lawsuit in US over alleged role in $330 million crypto Ponzi scheme

JOON HYOUNG LEE

Summary

JPMorgan is reportedly facing a class-action lawsuit over allegations that it aided and abetted a $330 million cryptocurrency Ponzi scheme.
Investors said JPMorgan turned a blind eye to allegedly fraudulent, suspicious transactions by Goliath Ventures and was its sole financial institution.
The complaint reportedly includes records of funds transferred from a JPMorgan account to Goliath Ventures’ wallet on Coinbase, and former CEO Delgado was arrested on wire fraud and money laundering charges.

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Global investment bank JPMorgan is facing a class-action lawsuit over allegations that it aided and abetted a $330 million cryptocurrency Ponzi scheme.

According to Cointelegraph on the 11th (local time), US investors filed a class-action complaint on the 10th in the US District Court for the Northern District of California, alleging that JPMorgan turned a blind eye to suspicious transactions linked to Goliath Ventures. Goliath Ventures recently filed for bankruptcy amid allegations of a $328 million Ponzi scheme. Cointelegraph reported that “the investors who brought the class action claim JPMorgan allowed Goliath Ventures to use JPMorgan’s infrastructure to siphon off investor funds.”

The plaintiffs alleged that JPMorgan was the only financial institution doing business with Goliath Ventures from 2023 through last year. The complaint is also said to include records showing funds transferred from a JPMorgan account to Goliath Ventures’ wallet on Coinbase.

Meanwhile, Christopher Delgado, the former chief executive officer (CEO) of Goliath Ventures, was arrested in the US last month on charges of wire fraud and money laundering. Delgado could face up to 30 years in prison if convicted on all counts.

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