Investors Sue JPMorgan, Alleging It Provided Banking Services for $328 Million Crypto Ponzi Scheme
Svmuu News JPMorgan Chase is facing a class-action lawsuit filed by investors for allegedly providing banking infrastructure for the now-defunct crypto investment firm Goliath Ventures and ignoring suspicious transactions. The investors filed a proposed class-action lawsuit in the U.S. District Court for the Northern District of California on Tuesday, accusing the bank of allowing Goliath Ventures to collect investor funds through its account system. The lawsuit alleges that despite JPMorgan CEO Jamie Dimon's repeated public criticisms of Bitcoin, the bank failed to stop wire transfers related to the crypto scam. The lawsuit claims JPMorgan should have known, through its "Know Your Customer" (KYC) processes, that Goliath was operating a crypto investment fund pool under the guise of "private equity" without holding the necessary sales licenses. The U.S. Attorney's Office for the Middle District of Florida previously announced the arrest of Goliath Ventures CEO Christopher Delgado on February 24. If convicted on all charges, he could face up to 30 years in federal prison. Prosecutors stated that the Ponzi scheme operated from January 2023 to January 2026, during which Goliath Ventures raised at least $328 million from over 2,000 investors. (Cointelegraph)
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