WASHINGTON— Litigation tied to the alleged $328-million Goliath Ventures cryptocurrency fraud is widening, with two new proposed federal class actions accusing Bank of America and New Jersey-based Broad Financial of helping funnel investor and retirement money into what prosecutors say was a Ponzi scheme run by Goliath founder Christopher Alexander Delgado.
Law360 reported the new suits were recently filed in federal court—one against Bank of America and one against Broad Financial, which facilitates self-directed IRA-LLC structures—marking the latest expansion of civil claims beyond Goliath itself and earlier litigation targeting JPMorgan Chase.
Federal prosecutors have already alleged Delgado, 34, raised at least $328 million from investors by promising returns from cryptocurrency liquidity pools while operating a classic Ponzi-style fraud. According to the U.S. Attorney’s Office for the Middle District of Florida and IRS Criminal Investigation, Delgado was arrested in February on wire fraud and money-laundering charges, and authorities allege only a tiny fraction of investor funds was actually deployed as represented, with much of the money instead used to pay earlier investors and fund personal spending.
The new complaints, according to Law360 and attorney summaries published by plaintiffs’ counsel, contend Bank of America became a key banking conduit after JPMorgan exited the relationship, allegedly processing tens of millions of dollars in suspicious transfers that plaintiffs say should have raised red flags. The Broad Financial case separately alleges the firm helped create or administer self-directed IRA/LLC arrangements that made it easier for retirees and other investors to move tax-advantaged retirement assets into Goliath, giving the alleged scheme a pipeline to IRA and 401(k)-linked money. The filings argue those services helped confer legitimacy on Goliath and enabled the movement of funds into crypto platforms and back out as purported “returns.”
The broader fallout is mounting quickly. A first investor class action was filed earlier this month against Goliath and Delgado in South Florida, and a separate proposed class action has already targeted JPMorgan Chase in California, alleging it ignored obvious warning signs while handling hundreds of millions in transactions.