The US Commodity Futures Trading Commission (CFTC) has announced that it filed a complaint in the U.S. District Court for the Middle District of Florida against Goliath Ventures. Inc. and CEO, Christopher Delgado, a Florida resident.
The complaint alleges the defendants engaged in a Ponzi scheme by fraudulently soliciting and accepting funds from the public for crypto asset trading, including in bitcoin and ether. Contrary to their representations, the defendants misappropriated all customer funds, including by paying fictitious profits to existing customers and funding Delgado’s lavish lifestyle. Defendants also falsely guaranteed the return of principal investments and/or profits and issued false account statements reflecting nonexistent profits. In total, approximately 1,600 customers contributed at least $397 million to the defendants’ fraud.
“We will continue to aggressively police fraud, abuse, and manipulation in the crypto asset markets to ensure that bad actors are punished, while developing clear rules of the road so that good actors have the opportunity to build on American soil,” said Chairman Michael S. Selig. “Today’s action further underscores our commitment to rooting out misconduct in these markets.”
“The Division of Enforcement continues to be an important cop on the beat in addressing fraud in connection with digital commodities,” said Director of Enforcement David I. Miller. “We will continue to take action to protect our markets and the public from misconduct.”
In the complaint, the CFTC seeks restitution, disgorgement, civil monetary penalties, trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations, as charged.
