SEC, CFTC sue Goliath Ventures over alleged $400 million crypto fraud

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SEC, CFTC sue Goliath Ventures

Highlights

SEC and CFTC filed parallel civil lawsuits accusing Goliath Ventures of raising at least $425 million from over 1,300 investors through unregistered crypto securities and commodity offerings.
Regulators allege Goliath Ventures misused or diverted investor funds, fabricated account data, paid out new investments to earlier investors, and collapsed after failing to meet obligations by November 2025.
Founder Delgado pleaded guilty to wire fraud and money laundering, admitting to at least $250 million in investor losses and agreeing to forfeit assets plus permanent securities-industry bans in a bifurcated SEC settlement.

Regulators outline parallel civil allegations

According to Cointelegraph, the civil actions stem from separate complaints by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, which accuse Goliath Ventures of raising investor money for crypto-related strategies that were not carried out as promised.

The SEC says Goliath raised at least $425 million from more than 1,300 investors through an unregistered securities offering. The agency alleges investors were told their funds would be deployed into crypto liquidity pools, but none of the money or crypto assets were invested, while Delgado diverted at least $51 million for personal use.

In a separate case, the CFTC says about 1,600 customers contributed at least $397 million after Goliath solicited funds for crypto trading in Bitcoin and Ether. The regulator is seeking restitution, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction.

According to the SEC complaint, Goliath promised monthly returns of 3% to 10% and guaranteed investors' principal, presenting the returns as fees generated by traders using its liquidity pools. The agency alleges the company instead used funds and crypto assets from new and existing investors to pay earlier investors and fabricated account balances and performance metrics.

The SEC also says Goliath paid commissions to sales agents who recruited investors. By November 2025, the company could no longer raise money quickly enough to meet its obligations, stopped making monthly distributions and collapsed, the agency says.

Criminal case adds pressure on founder

Delgado has agreed to a bifurcated settlement in the SEC case, subject to court approval, that would permanently bar him from violating the securities-law provisions cited in the complaint. He would also be barred from participating in securities transactions outside activity in his personal accounts and from associating with a broker or dealer.

The court will determine disgorgement, prejudgment interest and any civil penalty. The agencies' civil actions add securities and commodities-law consequences to a criminal case that has already produced a guilty plea, expanding the avenues for investor recovery and market restrictions.

Delgado previously pleaded guilty to conspiracy to commit wire fraud, wire fraud and money laundering. On June 30, the U.S. Department of Justice said at least $400 million was paid to Goliath and that Delgado admitted causing at least $250 million in investor losses, while also agreeing to forfeit properties, vehicles, luxury goods, bank accounts and crypto wallets tied to the scheme.

Our earlier report on Ontario Securities Commission investor warnings highlighted four firms the regulator said were not registered to trade or advise on securities in Ontario. It also emphasized basic investor-protection steps, including checking a provider’s registration status using official OSC tools and contacting the regulator if approached by unregistered solicitors.

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