Former Goliath Ventures CEO Christopher Alexander Delgado pleaded guilty to his role in a crypto investment scheme that prosecutors said raised at least $400 million from investors.

On Tuesday, the US Department of Justice (DOJ) said Goliath promised investors monthly returns generated through digital asset liquidity pools between January 2023 and January 2026.

Prosecutors said the funds were instead used to pay earlier investors, process withdrawals, fund luxury spending and finance business events. 

Delgado pleaded guilty to conspiracy to commit wire fraud, as well as wire fraud and money laundering. Under the plea agreement, he admitted the scheme caused at least $250 million in investor losses and agreed to forfeit an extensive portfolio of luxury assets purchased with investor funds.

According to the DOJ, Delgado agreed to surrender eight properties, 11 vehicles, 30 watches, over 50 luxury bags and wallets, at least 29 pieces of jewelry and bank accounts and crypto wallets. He faces up to 20 years in prison for each fraud count and up to 10 years for money laundering.

Delgado’s sentencing is scheduled for Oct. 8. 

Excerpt of the plea agreement. Source: DOJ

Guilty plea follows Delgado’s public apology

The plea follows Delgado’s television appearance and public apology to investors. On May 12, Delgado appeared in an interview with Florida television station WFTV. At the time, he said investors had placed their trust in him and that he had failed them, saying he had voluntarily returned to the US and was cooperating with authorities.

Delgado said only about $160,000 remained in the company’s bank account at the time of his arrest and said that other former colleagues were involved in the operation. 

Related: Florida man pleads guilty for promoting $1.8B ‘HyperFund’ crypto fraud

The case also drew scrutiny of the financial institutions that processed Goliath funds. On March 12, investors filed a proposed class-action lawsuit against JPMorgan Chase, alleging that the bank ignored suspicious transactions and allowed Goliath to collect investor funds through its accounts. 

The lawsuit claimed that about $253 million passed through a JPMorgan account, including about $123 million later transferred to Goliath’s wallets at Coinbase. A separate federal complaint also identified flows through Bank of America and directly to Coinbase wallets. 

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