Crypto firm files for Chapter 11 bankruptcy after founder's arrest

Goliath Ventures, an Orlando, Florida-based crypto firm, filed for Chapter 11 bankruptcy, Bondoro reported connected March 16.

The company, tied to an alleged $328 cardinal Ponzi scheme, filed for bankruptcy successful the U.S. Bankruptcy Court for the Southern District of Florida.

Chapter 11 bankruptcy is simply a court-supervised restructuring process that allows crypto firms to stabilize operations, intermission lawsuit withdrawals, and repay creditors alternatively than instantly liquidating assets.

Related: Popular crypto crippled shuts down among high-profile exits

It was connected Feb. 24 that Goliath Ventures, formerly Gen-Z Venture Firm, founder and CEO Christopher Delgado got arrested connected charges of wire fraud and wealth laundering. If convicted connected each counts, Delgado faces a maximum punishment of 30 years successful national prison.

Authorities accused him of operating Goliath arsenic a Ponzi strategy during January 2023-January 2026 by getting victims to invest important amounts of wealth nether mendacious and fraudulent promises of monthly returns from crypto liquidity pools.

However, these funds were funneled into paying purported returns to earlier investors, returning main to investors, and the firm's extravagant concern gatherings and luxury question accommodations, the authorities further claimed.

"Based connected these mendacious and fraudulent representations, Goliath obtained astatine slightest $328 cardinal from unfortunate investors."

They besides accused Delgado of purchasing 4 residential properties, each worthy betwixt $1.15 cardinal and $8.5 million.

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The Ponzi scheme defrauded over 2,000 investors. Gregory Wilson ($8.74 million) and John Euliano ($1.28 million) are among the astir affected victims of the fraud arsenic per the bankruptcy filing.

As reported earlier, a plaintiff adjacent filed a class-action suit against JPMorgan Chase (NYSE: JPM) earlier this period for turning a unsighted oculus to Goliath Ventures' suspicious transactions astatine the Wall Street bank.

The suit besides claimed the bank's concern with Coinbase (Nasdaq:), the largest U.S. crypto exchange, allowed the Ponzi strategy to emergence to this magnitude.

Related: Another large Wall Street slope sued implicit $328 cardinal ponzi scheme

This communicative was primitively published by TheStreet connected Mar 28, 2026, wherever it archetypal appeared successful the Bankruptcy News & Analysis section. Add TheStreet arsenic a Preferred Source by clicking here.