CFTC Charges Goliath Ventures With $400M Bitcoin Fraud

Delgado has already admitted criminal responsibility. In June, in a parallel case brought by the U.S. Attorney’s Office for the Middle District of Florida, he pleaded guilty to federal charges tied to the fraud. 

The Securities and Exchange Commission filed its own civil action against Delgado and Goliath on Tuesday, the same day as the CFTC complaint.

CFTC Chairman Michael S. Selig framed the case as part of a broader posture toward digital asset markets, saying the agency would keep policing fraud and manipulation while it develops clearer rules so legitimate firms can build domestically. David I. Miller, the agency’s director of enforcement, said the division remains what he called an important cop on the beat on digital commodity fraud.

The CFTC is seeking restitution for customers, disgorgement of ill-gotten gains, civil monetary penalties, trading and registration bans, and a permanent injunction barring further violations of the Commodity Exchange Act and the agency’s regulations.

The allegations in the civil complaint remain unproven. Counsel for Delgado and Goliath Ventures was not identified in the CFTC’s announcement.

Restitution orders in cases like this one are frequently difficult to collect. The agency routinely notes that wrongdoers may not have enough remaining assets to repay what victims lost.