Investors are suing JPMorgan Chase, accusing it of providing banking services for a $328 million cryptocurrency Ponzi scheme.

JPMorgan Chase is facing a class-action lawsuit from investors alleging that it provided banking infrastructure to the now-defunct crypto investment firm Goliath Ventures and ignored suspicious transactions. Investors filed a proposed class-action lawsuit Tuesday in the U.S. District Court for the Northern District of California, accusing the bank of allowing Goliath Ventures to collect investor funds through its account system. The lawsuit alleges that despite repeated public criticism of Bitcoin by CEO Jamie Dimon, JPMorgan failed to prevent wire transfers related to crypto fraud. The lawsuit further alleges that JPMorgan should have been aware that Goliath was operating a crypto investment pool as a "private equity" scheme during its Know Your Customer (KYC) process, yet it did not possess the necessary sales permits. The U.S. Attorney's Office for the Central District of Florida previously announced the arrest of Goliath Ventures CEO Christopher Delgado on February 24. If convicted on all charges, Delgado could face up to 30 years in federal prison. Prosecutors claim the Ponzi scheme operated from January 2023 to January 2026, during which time Goliath Ventures raised at least $328 million from over 2,000 investors. (Cointelegraph)