J.P. Morgan Chase Is Accused of Assisting Goliath Ventures in Crypto Ponzi Scheme

Comparatively, according to market sources, a group of investors filed a class action lawsuit against J.P. Morgan Chase, accusing it of allegedly contributing to a $328 million cryptocurrency Ponzi scheme operated by Goliath Ventures.

According to the lawsuit, J.P. Morgan is Goliath's main banking institution, and despite the suspicious transaction, the bank did not block the transfer of funds through its account and Coinbase wallet. The plaintiff stated that J.P. Morgan's partnership with Coinbase made it less wary of Goliath's transactions, and that Goliath as a profitable customer caused the bank to ignore its operations. Approximately $123 million was sent from a J.P. Morgan account to Coinbase, and CEO Goliath controlled the funds through his personal Coinbase account, actually only invested $1 million into the liquidity pool and posted false returns on his website. Earlier in February, the former CEO of Goliath Ventures was arrested on suspicion of operating an approximately $328 million crypto Ponzi scheme.