Ponzi

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The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) filed separate civil lawsuits on Tuesday against Goliath Ventures and founder Christopher Delgado over an alleged crypto Ponzi scheme that raised about $400 million.&nbsp;The SEC <a href="https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26608" rel="noopener noreferrer nofollow">said</a> Goliath raised at least $425 million from more than 1,300 investors through an unregistered securities offering. Investors were told their money would be placed in crypto liquidity pools, but the agency alleged none of the funds or crypto assets were invested in the pools and Delgado diverted at least $51 million for personal use.&nbsp;In a separate action, the<a href="https://www.cftc.gov/PressRoom/PressReleases/9280-26" rel="noopener noreferrer nofollow"></a>CFTC <a href="https://www.cftc.gov/PressRoom/PressReleases/9280-26" rel="noopener noreferrer nofollow">said</a> about 1,600 customers contributed at least $397 million after Goliath solicited funds for crypto trading in Bitcoin and Ether.Delgado has agreed to settle the SEC’s civil case, while the CFTC is separately seeking restitution, penalties and market bans.Delgado<a href="https://cointelegraph.com/news/goliath-ceo-guilty-400m-crypto-ponzi-case" rel="noopener noreferrer nofollow"> previously pleaded guilty</a> on June 30 to conspiracy to commit wire fraud, wire fraud and money laundering. The US Department of Justice said at the time that at least $400 million was paid to Goliath and that Delgado admitted causing at least $250 million in investor losses. He also agreed to forfeit properties, vehicles, luxury goods, bank accounts and crypto accounts traceable to the scheme.&nbsp;<h2 id="delgado-agrees-to-settle-sec-case">Delgado agrees to settle SEC case&nbsp;</h2>According to the SEC, Goliath promised monthly returns of 3% to 10%, generated from fees paid by traders using its liquidity pools, while guaranteeing investors’ principal. The complaint alleges the company instead used funds and crypto assets from new and existing investors to pay earlier investors and fabricated account balances and performance metrics.&nbsp;The SEC said Goliath paid commissions to sales agents who recruited investors. By November 2025, the company could no longer raise money quickly enough to meet obligations, stopped making monthly distributions and collapsed, according to the agency.&nbsp;Related: <a href="https://cointelegraph.com/news/goliath-ventures-ceo-charged-over-alleged-crypto-ponzi-apologizes-to-investors-in-interview" rel="noopener noreferrer nofollow">‘I failed them’: Goliath Ventures CEO charged with crypto Ponzi apologizes</a>Delgado agreed to a bifurcated settlement, subject to court approval, that would permanently bar him from violating the securities-law provisions cited in the complaint. He would also be barred from participating in securities transactions except for certain transactions in his personal accounts and from acting as or associating with a broker or dealer.The court will determine the amount of disgorgement, prejudgment interest and a civil penalty.&nbsp;Magazine: <a href="https://cointelegraph-magazine.com/japanese-pension-fund-tips-1-in-crypto-g7-urges-action-on-nk-hackers-asia-express/" rel="noopener noreferrer nofollow">Japanese pension fund tips 1% in crypto, G7 urges action on NK hackers: Asia Express</a>

SEC, CFTC sue Goliath Ventures over $400M crypto Ponzi scheme

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