Investors in Goliath Ventures have filed a proposed class action in the US District Court for the Northern District of California, accusing JPMorgan Chase of enabling an alleged $328 million crypto Ponzi scheme.

The lawsuit claims JPMorgan served as Goliath’s primary bank during the operation, processing deposits and transfers to Coinbase wallets despite multiple warning signs.

More than 2,000 investors are believed to have been affected.

The complaint argues that JPMorgan “provided the essential banking infrastructure” that allowed Goliath Ventures to run its operations despite red flags that investors say should have raised alarms.

According to the filing, roughly $253 million was deposited into a JPMorgan account linked to Goliath between January 2023 and June 2025.

Around $123 million was then transferred from that account to Coinbase wallets, while approximately $50 million was distributed to investors as supposed returns.

Investigators believe Goliath ultimately collected at least $328 million from more than 2,000 investors.

The complaint contends that a fraud of this scale could not have moved through a single banking channel without detection, given the magnitude and flow of funds.

Authorities say Goliath Ventures, previously known as Gen-Z Venture Firm, accepted investor deposits through JPMorgan accounts before moving funds to cryptocurrency wallets maintained on Coinbase.

Christopher Alexander Delgado, identified as the operator behind Goliath, has been arrested on charges of wire fraud and money laundering.

The complaint also raises concerns about Know Your Customer compliance, alleging the bank knew Goliath was functioning as an unlicensed “private equity” cryptocurrency pool operator.

It further claims investor funds were commingled and used to pay earlier participants, a pattern consistent with classic Ponzi scheme mechanics.

If convicted on all counts, Delgado could face up to 30 years in federal prison.

Court filings indicate Goliath also maintained accounts at Bank of America.

Delgado was reportedly a co-signatory on one of the accounts held in the company’s name.

Investors were directed to deposit funds either into JPMorgan or Bank of America accounts, or send money directly to Goliath-controlled Coinbase wallets.

Investigators say Delgado held sole control over those wallets.

The complaint was filed by investor Robby Alan Steele and legal counsel representing affected investors. The lawsuit does not yet specify a total damages amount.

Attorneys involved in the case say additional complaints may follow as more individuals and entities believed to have played a role are identified.

The strategy is aimed at pursuing claims carefully to maximize recovery for investors.

At the center of the case is whether JPMorgan failed to act on alleged warning signs while handling Goliath’s accounts.

The outcome could influence how banks monitor high-risk clients and crypto-related transactions going forward.

The post Why are investors suing JPMorgan over a $328M crypto Ponzi case? appeared first on Invezz

Bitcoin price in Telegram @btc_price_every_hour

81 +