JPMorgan faces lawsuit over alleged role in $328 Million crypto Ponzi scheme

More than 2,000 investors filed a proposed class-action lawsuit against JPMorgan Chase, alleging the bank provided the financial infrastructure that enabled a cryptocurrency Ponzi scheme responsible for at least $328 million in losses.

The complaint, filed on Tuesday in the US District Court for the Northern District of California, named California resident Robby Alan Steele as the lead plaintiff. Steele claims he lost $650,000 after liquidating part of his 401(k) retirement savings and wiring the funds to accounts associated with Goliath Ventures held at Chase.

According to the complaint, Steele transferred $310,000 in cash and an additional $340,000 following a post-tax retirement withdrawal. The funds were allegedly directed to Goliath Ventures accounts that were later tied to the suspected fraudulent operation.

Goliath Ventures allegedly raised hundreds of millions in Ponzi scheme

Goliath Ventures, a Florida-based company formerly known as Gen-Z Venture Firm, was led by CEO Christopher Alexander Delgado. The firm promoted what it described as "joint venture agreements" that promised strong investment returns through cryptocurrency trading, arbitrage strategies, liquidity pools, and Bitcoin mining.

Between January 2023 and January 2026, the company allegedly raised more than $328 million from over 2,000 investors across the United States.

Delgado is accused of diverting millions of dollars for personal spending, including luxury vehicles, jewelry, and real estate purchases. He was arrested on February 24 on federal charges of wire fraud and money laundering. Prosecutors are now pursuing asset forfeiture related to the alleged scheme.

The lawsuit focuses more on JPMorgan Chase's role as Goliath Ventures' primary banking partner. Chase allegedly served as the firm's main banking institution from January 2023 until June 2025. During that time, approximately $253 million was deposited into Goliath's primary Chase account.

Bank records cited reveal that roughly $123 million of those funds were transferred to Coinbase wallets. Another $50 million was reportedly wired out to investors as supposed investment returns. The lawsuit claims these payments largely came from incoming deposits rather than profits.

Plaintiffs argue that JPMorgan Chase either knew or should have known about suspicious activity linked to the accounts. The bank allegedly failed to respond to multiple red flags despite operating advanced monitoring tools and having obligations under US anti-money laundering regulations and the Bank Secrecy Act.

"A fraudulent scheme of this magnitude cannot be run surreptitiously through one bank," the filing stated.

The lawsuit includes five legal claims against JPMorgan Chase, including aiding and abetting fraud, aiding and abetting breach of fiduciary duty, unjust enrichment, negligence, and violations of California's Unfair Competition Law.

Plaintiffs are seeking certification of a nationwide investor class. The filing also requests compensatory damages, restitution, disgorgement of fees earned by the bank, and the establishment of a constructive trust over recovered funds.