SEC Sues Mining Automatic, Founder Over Alleged $22 Million Crypto Fraud

Florida-based Goliath Ventures and its founder and chief executive, Christopher A. Delgado, marketed investments in purported crypto asset liquidity pools from January 2023 through January 2026. Investors were promised monthly returns of 3% to 10% and repayment of principal. Regulators allege no customer money or crypto assets reached those pools; instead, funds from new and existing investors were used to pay earlier participants, making the case a major test of U.S. enforcement against crypto-linked investment fraud.

On August 11, 2026, the CFTC and SEC filed separate civil actions in the U.S. District Court for the Middle District of Florida. The CFTC said about 1,600 customers contributed at least $397 million and alleged Delgado diverted at least $48 million, while the SEC counted more than 1,300 investors, at least $425 million raised and at least $51 million used personally. Delgado pleaded guilty to federal criminal charges in June and is awaiting sentencing; regulators are seeking restitution, disgorgement, penalties and permanent market bans.

The case centers on South Dakota investor Wenner, who allegedly used his company Benaiah to solicit money from the public and carry out a cryptocurrency investment fraud totaling as much as $20 million. The Justice Department’s and a federal grand jury’s active involvement underscores the US government’s enforcement push on virtual-asset regulation and money laundering. It also serves as a warning to investors about emerging forms of Ponzi schemes.

A US federal grand jury has formally indicted Wenner, 43. He pleaded not guilty to all charges during a federal court appearance on July 10, 2026, and has been released on bail. His trial is scheduled to begin on September 15, 2026. If convicted of the alleged wire fraud, money laundering and bank fraud, he could face up to 30 years in prison and substantial fines.

From October 2022 through mid-2024, Nathan Fuller solicited investments in pooled crypto-asset ventures through Privvy Investments and Gateway Digital Investments. He claimed proprietary AI bots could conduct high-frequency arbitrage and even guaranteed returns of more than 100% within 21 days. The case highlights the risk of investment fraud combining AI hype, crypto assets and promises of high returns.

The U.S. Securities and Exchange Commission sued Fuller in federal court in the Southern District of Texas on May 28, 2026, alleging that he raised $12.3 million from about 150 investors. Only about $380,000, or roughly 3%, was used for cryptocurrency trading, while at least $6.2 million was allegedly diverted to personal expenses and about $5.5 million was used for Ponzi-like payments. Fuller also falsely claimed that the funds were covered by FDIC insurance and professional liability insurance.

Bitcoin Latinum, or LTNM, raised funds through simple agreements for future tokens, or SAFTs, in an effort led by Donald Basile-controlled GIBF GP and Monsoon Blockchain. The SEC alleged that the defendants claimed the token was backed by up to $1 billion in insurance, an asset pool and a trust, none of which existed. The case highlights the investment risks of crypto assets marketed as “insured.”

The US Securities and Exchange Commission sued Basile, GIBF GP and Monsoon in federal court in the Eastern District of New York on April 17, 2026, alleging that they raised about $16 million from hundreds of investors. The SEC said the funds were used for purchases including about $4.1 million for a Miami condominium, $2.8 million for a Utah home and $160,000 for a horse. It is seeking disgorgement, civil penalties and a bar on Basile serving as a company officer.