The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) filed separate civil lawsuits against Goliath Ventures and its founder Christopher Delgado on Tuesday. The SEC claims that Goliath raised at least $425 million from over 1,300 investors through an unregistered securities offering, promising monthly returns of 3% to 10%. However, the agency alleges that none of the funds or crypto assets were invested in the promised liquidity pools and Delgado diverted at least $51 million for personal use.
Delgado has agreed to settle the SEC’s civil case, while the CFTC is seeking restitution, penalties, and market bans. He previously pleaded guilty on June 30 to conspiracy to commit wire fraud, money laundering, and wire fraud, admitting to causing at least $250 million in investor losses. The SEC alleges that Goliath paid commissions to sales agents who recruited investors and used funds from new and existing investors to pay earlier investors.
Goliath Ventures was alleged to be running a cryptocurrency Ponzi scheme by soliciting investments for trading Bitcoin and Ether, with customers contributing at least $397 million.
Written by Steven Cook
Regulation Desk
