The SEC and CFTC have sued Goliath Ventures and its founder for a $400 million cryptocurrency Ponzi scheme

The U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) have filed civil lawsuits against Goliath Ventures and its founder Christopher Delgado, accusing them of operating a cryptocurrency Ponzi scheme with a scale of approximately $400 million. The SEC stated that the company raised at least $425 million from over 1,300 investors through unregistered securities offerings.

The SEC indicated that Goliath Ventures promised to invest the funds into cryptocurrency liquidity pools and provide returns of 3% to 10% per month, but did not invest any funds or cryptocurrency assets, and Christopher Delgado misappropriated at least $51 million for personal expenses. The CFTC reported that approximately 1,600 clients invested at least $397 million in Bitcoin and Ethereum trading. Christopher Delgado has agreed to settle the SEC case, with specific terms pending court approval; the CFTC is seeking the return of funds, restitution, civil penalties, and a permanent injunction. Previously, he pleaded guilty to conspiracy to commit telecommunications fraud, telecommunications fraud, and money laundering, admitting to causing investors a loss of at least $250 million.