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$400 million in alleged investor funds sits at the center of a joint enforcement action the SEC and CFTC have filed against Goliath Ventures.
Regulators allege the crypto firm solicited money by promising returns from liquidity pools, then paid earlier participants with later investor capital while its founder diverted proceeds to personal luxury spending.
What the complaints allege Goliath Ventures marketed itself as a crypto liquidity-pool operation. Investors were promised returns tied to those pools.
The SEC and CFTC both allege that description was false: no material yield came from liquidity operations. The $400 million figure is the total investors allegedly placed into the scheme.
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