Victims Sue JPMorgan, Bank of America Over Alleged Crypto Scam
The victims of an alleged cryptocurrency investment fraud are suing JPMorgan, Bank of America and Coinbase, alleging the firms should have spotted evidence of an ongoing Ponzi scheme.
Last week, Dave and Brigitte Emery, along with Kamran Soleimani, filed a class action suit on behalf of the alleged victims of Christopher Delgado. The lawsuit comes months after federal authorities arrested Delgado in Florida, charging him with wire fraud and money laundering in a $328 million scheme run through his firm, Goliath Ventures.
In the complaint, the Emerys and Soleimani also sued the law firm Alston & Bird, alleging that the attorneys prepared documents arguing that Goliath Ventures’ business model didn’t fall under securities regulations, even though they should have known better.
According to the Justice Department charges, Delgado ran a Ponzi scheme from January 2023 through January 2026 by soliciting victims to invest money in so-called “crypto liquidity pools.” According to the complaint, Goliath claimed it would place investors’ funds in the pools, with promised monthly returns of 3% to 8% for investors generated through fees. Despite raising about $328 million, the plaintiffs alleged that only about $1.5 million was invested as promised.
Instead, Delgado used the money for “extravagant business gatherings, Christmas parties and luxury travel accommodations,” as well as purchasing four residential properties each valued between $1.15 million and $8.5 million, according to the DOJ. Delgado also allegedly used new funds to pay fake returns to existing investors.
The plaintiffs also claimed that Goliath hired Alston & Bird because it wanted more exposure to retail investors but didn’t want to be shackled by the regulations governing securities recommendations and sales. Though they believe Alston & Bird should have known the liquidity pool deal constituted securities under the so-called “Howey Rule” (based on a Supreme Court ruling, the rule guides regulators in determining when transactions qualify as investment contracts under U.S. securities laws).
The plaintiffs claimed Alston & Bird then crafted a legal opinion treating the investors as “partners” to avoid securities laws, which they claimed, “provided legitimacy to an otherwise illegitimate structure.”
In the case of JPMorgan Chase and Bank of America, the plaintiffs argued that federal laws demand banks “know their customers,” and that the banks should have understood Goliath’s alleged business model was to raise money from investors to generate fees to guarantee returns. Therefore, the bank should have observed “banking activity consistent with this business model,” including the receipt of funds, their placement in the crypto liquidity pools, fee receipts and return payments to investors.
“But that was not what JPMorgan Chase nor Bank of America saw,” the complaint read. “Instead, the banks saw a great deal of investor money entering the Goliath account—and an array of other banking activities blatantly at odds with Goliath’s claimed business model.”
Finally, in the case of Coinbase, the plaintiffs alleged that Goliath’s Coinbase accounts transmitted cryptocurrency to user accounts associated with the investors, which were allegedly returns, “and were used to reinforce the appearance of a legitimate and successful investment operation.”
JPMorgan Chase and Alston & Bird did not return requests for comment, and Bank of America declined to comment. A Coinbase spokesperson said the firm would “vigorously defend itself against these accusations.”
The controversy has also roped in the mayor of Apopka, the Florida town where Delgado was based. Last week, newly elected Mayor Nick Nestra was subpoenaed for financial records as part of the investigation. Alleged victims also filed a class action suit against Delgado in March.