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JPM Sued Over $328M Crypto Scam: Compliance Failures Under Spotlight
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Key Takeaways
JPMorgan sued in a class action over an alleged $328M crypto Ponzi scheme tied to Goliath Ventures.
Complaint says JPM processed $253M despite red flags like large transfers and commingled funds.
The case adds to scrutiny after prior fines, including an ECB penalty and a $330M 1MDB-related settlement.
JPMorgan Chase (JPM - Free Report) has been sued by victims of an alleged $328-million cryptocurrency Ponzi scheme in a case that raises fresh questions about whether large banks are doing enough to detect and prevent financial crime.
The proposed class action, filed in federal court in California, accuses JPMorgan of enabling fraud linked to crypto investment firm Goliath Ventures. More than 2,000 investors say they lost hundreds of millions of dollars. Founder of the scheme, Christopher Alexander Delgado, allegedly ran a scheme promising high crypto returns, but used new investors’ money to pay earlier ones and for personal use.
According to the complaint, about $253 million moved through JPMorgan accounts linked to the scheme between January 2023 and June 2025, with roughly $123 million later transferred to cryptocurrency wallets.
Plaintiffs say JPM ignored warning signs, including rapid, large deposits and withdrawals, commingling of funds and transaction patterns commonly associated with fraud, while continuing to service the accounts and collect fees.
The case adds to wider scrutiny of banks’ anti-money laundering and compliance systems, while also reviving attention on JPMorgan’s past regulatory and legal troubles. In February 2026, the European Central Bank (ECB) fined J.P. Morgan SE 12.18 million euros ($14.32 million) for misreporting capital requirements. A year earlier, JPMorgan agreed to pay $330 million to settle claims related to the 1MDB scandal, involving more than $217 million in international transfers through Switzerland.
Other Finance Firms Facing Legal Troubles
In November 2025, the Federal Deposit Insurance Corporation (“FDIC”) filed a lawsuit against Capital One (COF - Free Report) , alleging that the bank paid about $100 million less than it should have to help bail out depositors of Silicon Valley Bank and Signature Bank, when both collapsed in 2023.
In sync with this, Capital One estimated in July 2025 that it might have to reserve an additional $200 million. The main concern of the dispute was whether Capital One understated its level of uninsured deposits by excluding a $56-billion position between two subsidiaries from regulatory filings that describe its financial condition.
In September, UBS Group AG (UBS - Free Report) agreed to pay €835 million ($986.8 million) to resolve a long-running French tax case concerning its cross-border business activities between 2004 and 2012.
UBS Group AG agreed to pay a €730-million ($862.7 million) fine and €105 million ($124.1 million) in civil damages to the French state. UBS Group AG stated that the matter is fully provisioned and its resolution is consistent with its strategy of addressing legacy issues in the best interests of all stakeholders.
JPMorgan shares have gained 21.8% over the past year compared with the industry’s growth of 24%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 2.82X, below the industry average.
Price-to-Tangible Book TTM
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JPMorgan’s 2026 earnings calls for a 6.8% rise on a year-over-year basis, while 2027 earnings are expected to grow 7.7%. In the past 30 days, earnings estimates for 2026 and 2027 have moved upward.
View the Zacks #1 Rank List
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JPM Sued Over $328M Crypto Scam: Compliance Failures Under Spotlight
Key Takeaways
JPMorgan Chase (JPM - Free Report) has been sued by victims of an alleged $328-million cryptocurrency Ponzi scheme in a case that raises fresh questions about whether large banks are doing enough to detect and prevent financial crime.
The proposed class action, filed in federal court in California, accuses JPMorgan of enabling fraud linked to crypto investment firm Goliath Ventures. More than 2,000 investors say they lost hundreds of millions of dollars. Founder of the scheme, Christopher Alexander Delgado, allegedly ran a scheme promising high crypto returns, but used new investors’ money to pay earlier ones and for personal use.
According to the complaint, about $253 million moved through JPMorgan accounts linked to the scheme between January 2023 and June 2025, with roughly $123 million later transferred to cryptocurrency wallets.
Plaintiffs say JPM ignored warning signs, including rapid, large deposits and withdrawals, commingling of funds and transaction patterns commonly associated with fraud, while continuing to service the accounts and collect fees.
The case adds to wider scrutiny of banks’ anti-money laundering and compliance systems, while also reviving attention on JPMorgan’s past regulatory and legal troubles. In February 2026, the European Central Bank (ECB) fined J.P. Morgan SE 12.18 million euros ($14.32 million) for misreporting capital requirements. A year earlier, JPMorgan agreed to pay $330 million to settle claims related to the 1MDB scandal, involving more than $217 million in international transfers through Switzerland.
Other Finance Firms Facing Legal Troubles
In November 2025, the Federal Deposit Insurance Corporation (“FDIC”) filed a lawsuit against Capital One (COF - Free Report) , alleging that the bank paid about $100 million less than it should have to help bail out depositors of Silicon Valley Bank and Signature Bank, when both collapsed in 2023.
In sync with this, Capital One estimated in July 2025 that it might have to reserve an additional $200 million. The main concern of the dispute was whether Capital One understated its level of uninsured deposits by excluding a $56-billion position between two subsidiaries from regulatory filings that describe its financial condition.
In September, UBS Group AG (UBS - Free Report) agreed to pay €835 million ($986.8 million) to resolve a long-running French tax case concerning its cross-border business activities between 2004 and 2012.
UBS Group AG agreed to pay a €730-million ($862.7 million) fine and €105 million ($124.1 million) in civil damages to the French state. UBS Group AG stated that the matter is fully provisioned and its resolution is consistent with its strategy of addressing legacy issues in the best interests of all stakeholders.
JPMorgan’s Price Performance, Valuation & Estimates
JPMorgan shares have gained 21.8% over the past year compared with the industry’s growth of 24%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 2.82X, below the industry average.
Price-to-Tangible Book TTM
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JPMorgan’s 2026 earnings calls for a 6.8% rise on a year-over-year basis, while 2027 earnings are expected to grow 7.7%. In the past 30 days, earnings estimates for 2026 and 2027 have moved upward.
Estimate Revision Trend
Image Source: Zacks Investment Research
JPM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.