Law.com reports on the proposed federal class action filed against Alston & Bird LLP by investors who say they were wiped out by a $328 million cryptocurrency Ponzi scheme operated by Goliath Ventures and its CEO, Christopher Delgado. Murphy’s Law founding partner Liam Murphy is part of the legal team representing the proposed class alongside Sonn Law Group, Shaw Lewenz, and Schwartzbaum.
Reporter Michael A. Mora details how the proposed action, filed in the U.S. District Court for the Southern District of Florida, alleges that Alston & Bird was hired in 2025 to restructure Goliath’s investor agreements by drafting standardized joint venture agreements that labeled each investor a “partner” in the enterprise. By characterizing investors as partners rather than passive purchasers of securities, the firm allegedly believed the arrangement would not trigger securities registration and disclosure requirements. The plaintiffs argue that investors actually contributed capital to a pooled enterprise managed exclusively by Delgado, satisfying the Supreme Court’s test for an investment contract.
According to the complaint, Alston & Bird drafted the governing agreements, architected the structure through which funds were solicited and transferred, including retirement assets invested through self-directed IRAs, and issued a key opinion letter used to reassure investors and custodians that the program was lawful. Delgado allegedly lured investors with false promises of steady monthly returns of 4%, or 48% annually, from crypto liquidity pools. Rather than deploying funds as promised, Goliath allegedly used investor money to fund withdrawals, purported returns, and lavish events and travel.
Delgado was arrested in January on federal wire fraud and money laundering charges. Goliath raised at least $328 million from hundreds or thousands of investors nationwide. A Broward Circuit Court judge this week appointed an independent receiver to take control of Goliath after finding an immediate and irreparable risk that the firm’s assets could vanish without swift intervention.
The investors have filed the class action with a nationwide and Canadian class, asserting claims for professional negligence, breach of fiduciary duty, and constructive fraud. They seek class certification on behalf of all who invested pursuant to the agreements and suffered losses.
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.