The suit, filed this week in a federal court in San Francisco, alleges JPMorgan Chase knowingly permitted one of its customers, Goliath Ventures, to carry out a massive, $328 million fraud that involved a fake crypto liquidity pool scheme and lavish misappropriations of customer funds.
But Delgado did not send the vast majority of customer funds to liquidity pools, the Department of Justice asserts. Instead, he allegedly spent the money on lavish vacations, homes, parties, and payments to early investors in an effort to keep the scheme going.
Now, one of the victims of that alleged scheme has sued Chase, arguing the bank “knowingly permitted” Goliath, one of its customers, to commingle investor funds and use them to power a Ponzi scheme.
The lawsuit specifically claims that because Goliath publicly described itself as a crypto liquidity pool operator, Chase should have confirmed whether the company was registered with the CFTC and other regulators.
“As part of their Know Your Customer obligation, Chase could have and should have confirmed this before accepting the account or continuing to bank Goliath,” the complaint reads. “Chase knew that it had not done so and thus knowingly turned a blind eye.”
A representative for JPMorgan Chase declined to comment on this story when reached by Decrypt.
“Dimon… warned for years that crypto was being used for fraudulent and criminal activities,” the lawsuit against the bank argues.
