Key Takeaways:
- SEC claims that Goliath is responsible for the raising of at least $425M from 1,300+ investors.
- Investors were promised 3% – 10% monthly returns from crypto liquidity pools.
- SEC says at least $51M was diverted for personal spending by CEO Christopher Delgado.
Goliath Ventures and its founder and chief executive officer, Christopher A. Delgado, were accused by the U.S. Securities and Exchange Commission of operating a cryptocurrency investment fraud spanning multiple years, which apparently fizzled when it couldn’t proceed with the payments anymore that were due to new investors.
On August 11, the SEC brought the civil enforcement action in the U.S. District Court for the Middle District of Florida.
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$425M Raised Through Crypto Liquidity Pool Claims
Goliath ran the alleged scheme using an unregistered securities offering from at least Jan. 2023 to Jan. 2026, according to the SEC filing.
Investors were advised to “partner” with Goliath by investing funds or crypto assets which would then be used to fund crypto liquidity pools. The company had offered investors profit distributions of between 3% and 10% per month, and guaranteed them the return of their investment.
The SEC alleges that those liquidity pools were not receiving investor money or crypto-assets.
Instead, the agency alleges Goliath used money and digital assets from newer investors to make payments to earlier investors, creating the appearance of a profitable crypto investment operation.
Read More: SEC to Ramp Up Crypto Engagement With Four Key Roundtables
Fake Performance Data and $51M in Personal Spending
The company apparently was depending on sales agents to draw in more investors, which the sales agents would be paid commissions for from investors’ money.
The SEC also says that Delgado misappropriated at least $51 million of his own funds. According to the complaint, the funds were spent on several home, luxury vehicle, travel and yacht acquisitions and expenses.
The supposed operation lasted until about November 2025, when Goliath was unable to secure the investor capital it needed. The monthly distributions were then stopped, the SEC alleges, and the scheme was a failure.
SEC Seeks Investor Funds and Permanent Restrictions
The SEC alleges these securities law violations include Sections 5 and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, in addition to Rule 10b-5. Delgado has agreed to a bifurcated settlement, subject to court approval.
If he adheres to the proposed judgment, he will not be able to ever again break the securities provisions cited by the SEC. He would no longer be permitted to participate in the issuance, purchase, offer or sale of securities except in certain transactions in his own name.
The proposed settlement would also bar Delgado from being a broker or dealer.
By motions filed by the SEC, the regulator wants injunctions and disgorgement, along with prejudgment interest (PI) against Goliath. The SEC stated that it still continues to investigate the issue.
The post SEC Charges Goliath Ventures in Alleged $425M Crypto Ponzi Scheme Targeting 1,300 Investors appeared first on CryptoNinjas.
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