U.S. regulators are charging crypto firm Goliath Ventures Inc. and its CEO in connection with an alleged US$425-million Ponzi scheme.
In June, the firm’s former president and CEO, Christopher Delgado, pleaded guilty to wire fraud, conspiracy and money laundering charges for operating an alleged Ponzi scheme that ran from January 2023 to January 2026 and took in more than US$400 million from investors — and resulted in at least US$250 million in investor losses.
According to court filings and the plea agreement, investors were misled with promises of guaranteed monthly returns to be generated by trading in the firm’s crypto liquidity pools. In fact, money from new investors was used to pay purported returns to earlier investors, and diverted to other uses.
On Tuesday, the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) also filed complaints against Delgado and the firm, alleging that they breached securities and derivatives rules.
Delgado agreed to a bifurcated settlement of the SEC’s complaint, which was filed in the U.S. district court in Florida. As part of that deal, he consented to the entry of a judgment, which is subject to court approval, that would impose a permanent injunction against him. He also agreed that the court will order disgorgement with interest, and a civil penalty, in amounts to be determined by the court.
In its case, the CFTC is seeking restitution, disgorgement, civil penalties, and trading and registration bans against Delgado and the firm.
The SEC is seeking injunctions and disgorgement against Goliath, which is now bankrupt.
Delgado is scheduled to be sentenced in the criminal case on Oct. 8.
As part of the plea deal, he also agreed to forfeit real estate, vehicles, luxury watches, bags and other items that can be traced to the proceeds of the scheme.