SEC, CFTC Sue Goliath Ventures, Founder Over Alleged $400 Million Crypto Ponzi Scheme
Summary
- The SEC and CFTC said they sued Goliath Ventures and its founder Delgado over an alleged $400 million cryptocurrency Ponzi scheme.
- Goliath Ventures promised monthly returns of 3% to 10% and principal protection through an unregistered securities offering and purported liquidity-pool fee income, but authorities said it was in fact a Ponzi scheme.
- Delgado pleaded guilty in connection with at least $250 million in investor losses and agreed to forfeit related cryptocurrency wallets and other assets.
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The US Securities and Exchange Commission and the Commodity Futures Trading Commission have filed separate civil lawsuits against Goliath Ventures and founder Christopher Delgado over an alleged $400 million cryptocurrency Ponzi scheme.
Cointelegraph reported on Aug. 11 that the SEC alleged Goliath Ventures raised at least $425 million from more than 1,300 investors through an unregistered securities offering. The company told investors the money would be deployed in cryptocurrency liquidity pools, but no investments were actually made, according to the complaint. The SEC alleged Delgado misappropriated at least $51 million for personal use.
In a separate complaint, the CFTC said about 1,600 customers paid at least $397 million on the understanding the funds would be used to trade Bitcoin and Ether. The agency asked the court to order restitution to investors, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction.
Goliath Ventures promised investors monthly returns of 3% to 10% and principal protection, saying the payouts would come from liquidity-pool fee income. Authorities said the business instead operated as a classic Ponzi scheme, using money from new investors to pay returns to earlier ones. Account balances and performance metrics were also allegedly falsified. After new inflows slowed following November 2025, the firm stopped monthly distributions and effectively collapsed.
Delgado agreed to a separate settlement with the SEC. Subject to court approval, he would be permanently barred from violating securities laws. He would also be banned from participating in securities offerings, except for transactions in his personal accounts, and from broker- or dealer-related activities. The court will separately determine disgorgement and civil penalties.
Delgado had previously pleaded guilty to conspiracy to commit wire fraud, wire fraud and money laundering. The US Department of Justice said on June 30 that at least $400 million had been paid into Goliath Ventures and that Delgado caused at least $250 million in investor losses. He also agreed to forfeit real estate, vehicles, luxury goods, bank accounts and cryptocurrency wallets tied to the case.
