Bloomberg Law reports on the proposed federal class action filed against Alston & Bird LLP by investors who say they were duped into contributing to an alleged $328 million cryptocurrency Ponzi scheme through business relationship contracts drafted by the international law firm. Murphy’s Law: The Crypto Law Firm is part of the legal team representing the plaintiffs alongside Sonn Law Group, Shaw Lewenz, and Schwartzbaum.
The complaint, filed in the U.S. District Court for the Southern District of Florida (Case No. 0:26-cv-60646), alleges that Alston & Bird architected the legal framework through which investor funds and retirement funds were solicited, pooled, transferred, and deployed into Goliath Ventures. According to the filing, the firm prepared an opinion letter assuring investors that the liquidity pool would not constitute a security, allowing CEO Christopher Delgado to raise capital through joint venture agreements without triggering regulatory scrutiny or obligations under securities laws. The complaint alleges this was incorrect advice and that none of the lawyers working on the matter were licensed in Florida.
Bloomberg Law notes that lawsuits have been pouring into Florida state and federal courts from investors claiming to have been deceived by Delgado, who has been charged with wire fraud and money laundering. According to federal prosecutors, Delgado started a legitimate cryptocurrency liquidity business but most of the funds were never invested in the pool, and millions were allegedly spent on private purchases and real estate. A state court this week appointed a receiver to protect the investors’ funds.
The complaint asserts that Alston & Bird’s work triggered a duty owed to the partners in the joint venture it created and represented, and that the firm then facilitated securities fraud and other misconduct on behalf of one partner against the rest. Adam A. Schwartzbaum, one of the attorneys representing the proposed class, told Bloomberg Law the complaint was “just the beginning.”
If you were an investor in Goliath Ventures or believe you have been the victim of a cryptocurrency fraud or Ponzi scheme, contact Murphy’s Law for a free consultation to discuss your legal options.