SEC Accuses Goliath Ventures of $425 million Cryptocurrency Ponzi Scheme

The agency also said Delgado personally diverted at least $51 million, spending the money on luxury homes, vehicles, travel and yachts. According to the complaint, Goliath relied on sales agents who were paid commissions from investor funds to keep new money flowing into the operation.

The SEC said the scheme began unraveling late last year, when the company could no longer raise enough fresh capital to keep up with monthly distributions. Payments then stopped, the agency alleged.

The regulator is seeking injunctions, disgorgement and prejudgment interest, along with permanent restrictions on Goliath and Delgado. The complaint cites alleged violations of federal securities laws, including anti-fraud provisions and registration rules.

The case has already widened beyond the SEC’s civil action. In separate criminal proceedings, federal authorities said Delgado later pleaded guilty to wire fraud, conspiracy and money laundering. Prosecutors said he admitted the operation was a Ponzi scheme and acknowledged using investor money to support an extravagant lifestyle. Sentencing is scheduled for Oct. 8, 2026.

The allegations add to a growing list of crypto fraud cases that have drawn scrutiny from U.S. regulators as they press harder against high-yield investment pitches in digital assets. For venture investors and founders, the Goliath case is a reminder that even as crypto markets mature, regulators are still focused on schemes that promise steady returns without a credible underlying business.