CFTC accuses Goliath of $397M crypto Ponzi scheme as CEO awaits sentencing

The Commodity Futures Trading Commission announced a lawsuit against Goliath Ventures and CEO Christopher Delgado for allegedly orchestrating a cryptocurrency Ponzi scheme that amassed nearly $397 million from about 1,611 customers.

This lawsuit follows that, in June, Delgado also pleaded guilty to criminal charges on the federal level. In that case, Goliath claimed to be paying investors returns earned on its crypto liquidity pools, but the assets were instead used to make payments back to customers and pay commissions, as well as to cover his personal spending.

CFTC says funds never reached liquidity pools

The CFTC claim alleges Goliath received Bitcoin, Ether, and other cryptocurrencies between November 2022 and February 2026.

Goliath assured clients their crypto would go into liquidity pools with decentralized exchanges for fees and that income would be distributed to their investors.

In its marketing literature, it advertised it was able to achieve returns of up to 3% a month, totaling 36% a year. In some agreements it stated that it even guaranteed investors their capital alongside profits of up to 5% a month, but the CFTC alleged no customer funds ever entered into liquidity pools.

Instead, $87 million was used to pay off existing customers, and $174 million went to directors and employees, sometimes in the form of commission for securing new customers.

The regulator claims at least $48 million of this was siphoned off by Delgado personally.

CFTC alleges Goliath used false audits

Goliath also allegedly sent false audit reports reassuring customers.

One purported audit, according to the complaint, stated Goliath “maintained an average balance of at least 115% of partner funds at all times.” Neither statement was true, says CFTC. Account statements that would arrive to customers were displaying profits not generated.

The complaint claims Delgado’s spending allegedly included $838,000 for a yacht, properties, cars, and jewelry. It asserts that corporate card expenditures amounted to $4.9 million in travel and $2.9 million in luxury goods and concierge services.

Delgado to be sentenced after guilty plea

On February 17, Delgado allegedly directed the directors not to respond to any of the customers’ status requests saying Goliath is “ceasing all operations”.

On June 30, Delgado pleaded guilty to conspiracy to commit wire fraud, wire fraud, and money laundering. The Justice Department is also seeking to forfeit seven properties and 11 vehicles it said were purchased using the proceeds.

Goliath shut down completely in February and filed for bankruptcy in March.

The CFTC now seeks restitution, disgorgement, civil monetary penalties, and permanent trading and registration bans.

Final Summary

• While Goliath collected at least $397 million, according to CFTC complaints, none of these client funds were ever invested as promised by Goliath. 
• Criminal charges against Delgado have resulted in guilty plea, whilst civil allegations by CFTC exist separately in court.