CFTC Sues Goliath Ventures, CEO Over $397 Million Crypto Ponzi Scheme

Crypto mining investments are exposed to volatile token prices, power costs and rising network difficulty, making claims of guaranteed returns a regulatory red flag. The U.S. Securities and Exchange Commission says Mining Automatic, operated through Bright Vision Distribution LLC, presented itself as an experienced mining business able to produce steady monthly payouts. The case is significant because it highlights how technically complex crypto ventures can be used to market investment contracts while obscuring whether investor capital is actually funding revenue-generating operations.

On July 20, 2026, the SEC filed partially settled charges against Mining Automatic and founder Zan Shaikh in federal court in Massachusetts. The agency alleges they raised about $22 million from more than 380 investors between June 2023 and May 2025, while using only about 13% of the money for purported mining expenses. The operation generated roughly $1.1 million in mining revenue but paid about $1.8 million in investor returns, meaning some payouts allegedly came from other investors’ funds. The SEC says at least $20 million more was collected than repaid; the defendants consented to permanent injunctions, with financial remedies to be decided by the court.

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.

The U.S. Commodity Futures Trading Commission regulates derivatives markets and can take action against commodities fraud involving crypto assets. The case centers on an unregistered pool, false profit claims and Ponzi-like fund flows, underscoring that digital-asset investments remain subject to established antifraud rules.

On July 7, 2026, the CFTC sued North Carolina resident Trevor L. Vernon and Argent Capital Management LLC, alleging that they raised more than $14 million from at least 60 people between March 2022 and February 2026. Despite persistent losses, they allegedly concealed the shortfalls with false performance figures and money from new investors.

Goliath Ventures, formerly known as Gen-Z Venture Firm, solicited funds from January 2023 to January 2026 by claiming to invest in cryptocurrency liquidity pools and promising fixed or low-risk monthly returns of 3% to 8%. In fact, only about $1.5 million flowed into Uniswap, while most of the money was used to pay earlier investors, fund withdrawals and cover lavish spending.

Christopher Alexander Delgado, 34, was arrested on February 24, 2026, when the scheme was valued at at least $328 million. He pleaded guilty on June 30 to conspiracy to commit wire fraud, wire fraud and money laundering. Prosecutors now say the operation raised at least $400 million and caused losses of at least $250 million. Sentencing is scheduled for October 8.