- Investors sued JPMorgan Chase, alleging it enabled a $328M crypto Ponzi scheme linked to Goliath Ventures.
- The lawsuit claims the bank processed $253M in transactions, including transfers to Coinbase, while ignoring fraud warning signs.
Investors who lost money on the Ponzi scheme have filed a lawsuit against JPMorgan Chase. They are claiming that the bank is involved in the scam by providing banking services. The case was filed in the federal court in Northern California.
Lawsuit Claims Bank Ignored Warning Signs
According to the case, investors believe that JPMorgan ignored several warning signs that the investment program was fraudulent. The lawsuit claims that the bank provided the essential banking infrastructure that allowed the Ponzi scheme to process deposits, transfers, and payments.
Basically, a Ponzi scheme is a type of fraud where money from the new investors is used to pay returns to the earlier investors instead of generating real profits. The complaint says that JPMorgan was the only bank used by Goliath Ventures, and around $253 million was deposited into a Chase account linked to the company.
The case also refers to the recent arrest of Christopher Alexander Delgado, who was accused of operating Goliath Ventures and was charged with wire fraud and money laundering related to the scheme. According to the lawsuit, more than 2000 investors were affected with losses of $328 million.
The spokesperson from JPMorgan told the reporters that the bank would not comment on the case. If the court approves the case as a class action, then more victims will be joined, and the case will then move through a legal process on the bank’s involvement in the alleged fraud.
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