ChainCatcher report: According to market sources, JPMorgan Chase is facing a class-action lawsuit in the U.S. District Court for the Northern District of California for allegedly providing banking infrastructure to a $328 million cryptocurrency Ponzi scheme operated by Goliath Ventures. The lawsuit alleges that approximately $253 million was deposited into Chase accounts, with $123 million transferred to Coinbase wallets and around $50 million paid to investors as false returns. The complaint states that Chase’s anti-money laundering systems failed to detect multiple red flags of fraud, including rapid inflows and outflows of funds and account commingling, and continued to provide services even after becoming aware of the fraudulent activity. The plaintiffs, representing over 2,000 investors, are seeking compensatory damages and disgorgement of fees earned by Chase. Goliath Ventures CEO Christopher Delgado was arrested on February 24.
JPMorgan Chase Faces Class Action Lawsuit Over $328 Million Crypto Ponzi Scheme
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Summary
JPMorgan Chase is facing a class action lawsuit in the Northern District of California for allegedly enabling a $328 million crypto Ponzi scheme orchestrated by Goliath Ventures. The lawsuit claims the bank processed $253 million in deposits, including $123 million sent to Coinbase wallets. Investors allege that Chase’s CFT measures failed to detect suspicious activity such as rapid fund movements and account mixing. The case, involving over 2,000 victims, seeks to recover fees and damages. Goliath’s CEO, Christopher Delgado, was arrested in February. According to court filings, some investors had initially moved BTC into the scheme as a hedge against inflation.
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