Investors accuse JPMorgan of enabling $328 million crypto scheme

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Investors accuse JPMorgan in scheme

How the scheme worked and where the money went

In the complaint, investors argue that JPMorgan could have been aware of Goliath Ventures’ activities through standard customer due-diligence procedures.

“Chase, by virtue of its Know Your Customer actually knew that Goliath was acting as a ‘private equity’ cryptocurrency pool operator investing money for investors, without being licensed at all to sell these investments,” the complaint states.

According to court documents, Goliath Ventures — previously known as Gen-Z Venture Firm — raised investor funds from January 2023 through January 2026. During that period, more than 2,000 investors allegedly invested at least $328 million in the project.

A significant portion of the funds moved through bank accounts. The lawsuit states that between January 2023 and June 2025, about $253 million was deposited into JPMorgan account number 0305 — nearly two-thirds of all investor funds. Roughly $123 million of that amount was later transferred to Goliath cryptocurrency wallets on Coinbase.

The case materials also mention accounts at Bank of America. “Delgado was a co-signatory on the BOA 9136 account in the name of Goliath,” the complaint states. Prosecutors say the company’s CEO, Christopher Delgado, was the only individual with signing authority over Goliath’s Coinbase wallets.

On Feb. 24, prosecutors in the Middle District of Florida announced Delgado’s arrest. If convicted on all charges, he could face up to 30 years in federal prison.

What the case means for banks and the crypto market

The lawsuit could become a significant test case for banks working with companies tied to the cryptocurrency industry. Plaintiffs argue that financial institutions have a duty to respond to suspicious activity and prevent their systems from being used in investment schemes.

U.S. regulators have increased scrutiny of such transactions in recent years. According to blockchain analytics firm Chainalysis, losses from cryptocurrency fraud exceeded $5 billion in 2024 alone. Many of these schemes relied on traditional banking channels to receive investor funds.

Lawyers representing the investors say the investigation is ongoing. “We are being purposeful and precise in who we file against, to be complementary to the receiver and his efforts,” said Jordan Shaw of Shaw Lewenz. He added: “The goal is not to duplicate efforts, but to maximize recovery.”

Previously, JPMorgan also commented on the future of crypto regulation. The bank believes the proposed CLARITY Act could play a key role in shaping the structure of the digital asset market and attracting institutional investment. Analysts at JPMorgan noted that the future trajectory of cryptocurrencies may depend less on technical charts and more on policy decisions made in Washington.

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