The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have filed separate civil cases against Goliath Ventures Inc. and its CEO, Christopher Delgado, over an alleged crypto Ponzi scheme involving about $400 million.

The complaints, filed on August 11 in the U.S. District Court for the Middle District of Florida, allege that Goliath promised returns from crypto liquidity pools but used investor money to pay earlier participants and fund personal spending. Delgado had already pled guilty to related federal criminal charges in June.

Regulators File Parallel Civil Cases

The CFTC said about 1,600 customers contributed at least $397 million after Goliath solicited funds for crypto trading in assets including bitcoin and ether.

The SEC’s complaint puts the amount at no less than $425 million from more than 1,300 investors. It says Goliath raised the money between January 2023 and January 2026 through an unregistered securities offering.

Both agencies describe the operation as a Ponzi scheme. The allegations have not yet been decided in the civil cases.

SEC Says Investor Money Never Entered the Pools

Goliath told investors that their money would be allocated to crypto asset liquidity pools managed by the company, according to the SEC. Investors were promised monthly distributions of 3% to 10% from trading fees, along with the return of their principal.

The SEC alleges that no investor funds or crypto assets were placed in those pools. Instead, money from new and existing investors was allegedly used to pay earlier investors.

Regulators also accuse the company of issuing false account statements and fabricated performance figures. Sales agents received commissions for bringing in more investors, according to the complaint.

Delgado Allegedly Diverted at Least $51 Million

The SEC says Delgado used at least $51 million of investor funds for personal expenses, including homes, luxury vehicles, a yacht, and travel.

By November 2025, Goliath could no longer raise money quickly enough to continue monthly distributions, the agency alleges. Payments stopped, and the operation collapsed.

The allegations match a common pattern in crypto Ponzi schemes and rug pulls: crypto terms are used to describe the investment, while the returns depend on money from later participants rather than the stated activity.

Criminal Case Preceded the Civil Filings

Delgado pled guilty in June to federal charges connected to the same alleged conduct. The CFTC cited the criminal case in announcing its complaint.

He has also agreed to a bifurcated settlement with the SEC, subject to court approval. The proposed judgment would impose permanent injunctions and restrict him from securities transactions and broker-dealer activity. The court would determine disgorgement, interest, and a civil penalty later.

Also, the CFTC is separately seeking restitution, disgorgement, monetary penalties, trading and registration bans, and a permanent injunction.

What the Case Means for Crypto Investors

The case is notable because regulators say no complex exploit or failed trading strategy caused the losses. The alleged scheme used the language of crypto liquidity pools to support guaranteed returns while investor money was directed elsewhere.

It also shows why smoothed account balances do not prove the existence of an underlying crypto strategy. In this case, the SEC says the displayed profits and pool activity were fabricated.