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A new lawsuit has placed JPMorgan Chase at the center of an alleged $328 million cryptocurrency fraud, claiming the bank’s accounts acted as the primary financial channel used to move and distribute investor funds. Plaintiffs argue that the bank processed deposits and transfers tied to the operation while the scheme collected millions from victims. The complaint states that early participants received payments using money from later investors.
According to the filing, the structure mirrored a classic Ponzi scheme that used cryptocurrency language to attract participants. Losses grew to $328 million before the operation collapsed.
The lawsuit raises a central question: Could the movement of hundreds of millions of dollars through one bank have revealed warning signs earlier?
The complaint alleges that accounts held at JPMorgan Chase received, moved, and distributed funds collected from victims. Plaintiffs state that the accounts acted as the exclusive banking vehicle for the operation.
According to the filing, the alleged operators used incoming investor funds to pay earlier participants rather than generate returns through trading or investments. The process continued until the scheme collapsed.
Plaintiffs claim the alleged structure allowed losses to accumulate to $328 million. They argue the pattern of deposits and withdrawals reflected a traditional Ponzi model. The complaint also frames the bank’s role as a central element in the case. It argues that the alleged fraud depended on the financial infrastructure provided through the accounts.
The lawsuit states that numerous warning signs should have triggered attention from the bank’s compliance systems.
“Numerous red flags made the fraudulent nature of the scheme obvious and known to Chase,” the proposed class action filed Wednesday states.
The complaint adds that the bank continued servicing the accounts despite those warning signs. It also claims the bank collected fees from the transactions that moved through the accounts.
Plaintiffs further argue that the scale of the operation made concealment unlikely. The filing states that “a fraudulent scheme of this magnitude cannot be run surreptitiously through one bank.”
Meanwhile, a JPMorgan spokesperson declined to comment when contacted about the allegations.
The lawsuit was filed by Robby Alan Steele through lawyers at Shaw Lewenz, with co-counsel representing the case. According to the complaint, JPMorgan served as the sole banking institution for an entity called Goliath. Plaintiffs claim the entity used the bank to handle investor deposits and outgoing payments.
The filing states that about $253 million entered a Chase account linked to Goliath between January 2023 and June 2025. From those funds, the complaint says approximately $123 million moved to cryptocurrency exchange Coinbase. Another $50 million reportedly went to investors as returns.
The lawsuit also references public criticism of cryptocurrencies from JPMorgan CEO Jamie Dimon. Plaintiffs argue that the criticism contrasts with the bank’s alleged conduct regarding the accounts. The complaint claims that the bank permitted a customer to combine investor funds within Chase accounts while distributing payments to earlier investors.
The lawsuit does not specify a final damages amount. Instead, it seeks accountability for the alleged role played by the bank’s financial infrastructure. Legal observers note that JPMorgan’s first step will likely involve a motion to dismiss. That stage would test whether the allegations meet legal standards before the case proceeds.
If the case continues beyond that stage, the focus will shift to what the bank’s compliance teams observed regarding the accounts named in the lawsuit.
For victims, the legal action seeks recovery from a solvent institution capable of paying a large judgment. Ponzi operators often lose or spend investor funds before victims can reclaim them through litigation. As a result, plaintiffs aim to pursue the bank that allegedly hosted the financial flows behind the scheme.
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A new lawsuit places JPMorgan Chase at the center of an alleged $328 million crypto Ponzi scheme. Plaintiffs claim the bank’s accounts served as the main financial channel used to collect deposits and move investor funds. The case now raises scrutiny over banking compliance systems and whether major institutions can detect large-scale cryptocurrency fraud earlier.
