Bloomberg Law reports on a new proposed class action filed against JP Morgan Chase Bank, alleging the world’s largest bank ignored red flags in its accounts that allowed a $328 million cryptocurrency Ponzi scheme to operate for two years. Murphy’s Law: The Crypto Law Firm is part of the legal team that filed the complaint alongside Sonn Law Group, Shaw Lewenz, and Adam A. Schwartzbaum.
The complaint, filed in the U.S. District Court for the Northern District of California (Case No. 3:26-cv-02067), alleges that Chase provided essential banking services to Goliath Ventures while ignoring clear indicators of fraud. The lawsuit claims that Chase’s fraud monitoring and analytics capabilities should have detected that banking activity was blatantly at odds with Goliath’s claimed business model. Specifically, the complaint alleges that Chase saw large volumes of investor deposits, inadequate deposits into cryptocurrency exchanges for actual investment, woefully insufficient exchange deposits coming back to pay investor profits, and an array of activity inconsistent with a legitimate liquidity pool operation.
Jeffrey R. Sonn of Sonn Law said in a statement that financial institutions play a critical gatekeeping role in the financial system, and when that role breaks down, investors suffer significant harm. The legal theory relies on Chase’s know-your-customer obligations and alleges the bank aided and abetted the Goliath Ponzi scheme by continuing to service accounts despite obvious warning signs.
Goliath’s CEO Christopher Delgado has been charged with wire fraud and money laundering after allegedly duping roughly 2,000 investors while using most of their funds to purchase luxury goods and properties. A state court has appointed a receiver to protect the business’s assets. Bloomberg Law notes that this case is one of several streaming into courts before and after Delgado’s arrest, including the proposed class action filed on March 5 against Alston & Bird LLP in the Southern District of Florida by the same group of firms.
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.