- The CFTC accuses Goliath Ventures of taking $397M from about 1,600 customers.
- Regulators allege customer funds were misused and fake profits were reported.
- Delgado now faces CFTC, SEC and criminal cases over the alleged crypto scheme.
The US Commodity Futures Trading Commission (CFTC) accused Goliath Ventures and its CEO, Christopher Delgado, of running a crypto fraud scheme that allegedly took in $397 million from about 1,600 customers. The regulator filed the complaint in Florida, saying the defendants solicited funds to trade Bitcoin and Ether on customers’ behalf.
Customer Funds Allegedly Misused
The CFTC alleges that Goliath misappropriated customer funds and used money from new customers to create the appearance of profits. The complaint also accuses Delgado of using customer funds to pay for his lifestyle.
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The CFTC said the defendants promised customers returns and sent statements showing profits that did not exist. The agency is seeking restitution, the return of allegedly misappropriated funds, financial penalties and trading bans. It also wants a permanent injunction preventing the defendants from committing further violations.
“We will continue to aggressively police fraud, abuse, and manipulation in the crypto asset markets to ensure that bad actors are punished,” the CFTC said.
Criminal and SEC Cases Follow
Delgado pleaded guilty to federal charges in June in a separate criminal case brought by the U.S. Attorney’s Office.
The SEC filed its own civil lawsuit against Delgado and Goliath on Aug. 11, adding to the legal pressure facing the company and its CEO.
Related: SEC Moves Toward Tailored Crypto Offering Rules as Token Issuers Await Regulatory Clarity
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