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JPMorgan Chase (NYSE:JPM) faces a proposed class action lawsuit accusing the bank of enabling a $328 million crypto Ponzi scheme run by Goliath Ventures by ignoring suspicious transactions and allowing fraudulent wire transfers to Coinbase (NASDAQ:COIN) wallets.
The $328 Million Scheme
Investors filed the lawsuit Tuesday in U.S. District Court for the Northern District of California, alleging JPMorgan was the sole banking institution for Goliath from January 2023 to May or June 2025.
“Goliath obtained at least $328 million from what are believed to be over 2,000 investors,” the complaint states.
Investors deposited about $253 million into JPMorgan's 0305 account from January 2023 through June 2025, representing nearly two-thirds of the $328 million total.
Investors transferred roughly $123 million of that amount to Goliath's wallets maintained by Coinbase.
CEO Christopher Delgado ran the scheme through Goliath Ventures from January 2023 to January 2026 before authorities arrested him on February 24.
He faces a maximum penalty of 30 years in federal prison if convicted on all counts.
Benzinga has reached out to JPMorgan with request for comment.
The Know Your Customer Failure
The lawsuit notes the irony of JPMorgan CEO Jamie Dimon’s repeated criticism of Bitcoin (CRYPTO: BTC) while the bank allegedly failed to prevent crypto scammers from using its infrastructure.
“Chase, by virtue of its Know Your Customer actually knew that Goliath was acting as a ‘private equity’ cryptocurrency pool operator investing money for investors, without being licensed at all to sell these investments,” the complaint states.
Prosecutors said Goliath Ventures, formerly known as Gen-Z Venture Firm, collected investor funds through JPMorgan accounts before transferring money to Coinbase wallets.
The U.S. Attorney’s Office for the Middle District of Florida announced the criminal case against Delgado.
The Bank of America Connection
A separate criminal complaint filed by the U.S. government revealed Goliath also held business accounts at Bank of America (NYSE:BAC).
Delgado was a co-signatory on the BOA 9136 account in Goliath’s name, with Goliath directors telling at least one investor that Delgado controlled the account.
Investors primarily deposited funds into JPMorgan's 0305 account, Bank of America's 9136 account, or transferred them directly to Goliath's wallets at Coinbase. Delgado was the sole signatory on Goliath’s Coinbase wallets.
More Complaints Coming
The first named plaintiff, Robby Alan Steele, said he invested a total of $650,000, including retirement funds.
Attorney Jordan Shaw from Shaw Lewenz said more complaints are coming as the team continues identifying individuals and entities they believe complicit.
“We are being purposeful and precise in who we file against, to be complementary to the receiver and his efforts,” Shaw said. “The goal is not to duplicate efforts, but instead to maximize recovery.”
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