JPM Sued Over $328M Crypto Scam: Compliance Failures Under Spotlight

JPMorgan Chase
JPM has been
sued by victims of an alleged $328-million cryptocurrency Ponzi
scheme in a case that raises fresh questions about whether large
banks are doing enough to detect and prevent financial crime.

The proposed class action, filed in federal court in California,
accuses JPMorgan of enabling fraud linked to crypto investment firm
Goliath Ventures. More than 2,000 investors say they lost hundreds
of millions of dollars. Founder of the scheme, Christopher
Alexander Delgado, allegedly ran a scheme promising high crypto
returns, but used new investors' money to pay earlier ones and for
personal use.

According to the complaint, about $253 million moved through
JPMorgan accounts linked to the scheme between January 2023 and
June 2025, with roughly $123 million later transferred to
cryptocurrency wallets.

Plaintiffs say JPM ignored warning signs, including rapid, large
deposits and withdrawals, commingling of funds and transaction
patterns commonly associated with fraud, while continuing to
service the accounts and collect fees.

The case adds to wider scrutiny of banks' anti-money laundering
and compliance systems, while also reviving attention on JPMorgan's
past regulatory and legal troubles. In February 2026, the European
Central Bank (ECB) fined J.P. Morgan SE 12.18 million euros ($14.32
million) for misreporting capital requirements. A year earlier,
JPMorgan agreed to pay $330 million to settle claims related to the
1MDB scandal, involving more than $217 million in international
transfers through Switzerland.

Other Finance Firms Facing Legal Troubles

In November 2025, the Federal Deposit Insurance Corporation
("FDIC") filed a lawsuit against
Capital One
COF, alleging
that the bank paid about $100 million less than it should have to
help bail out depositors of Silicon Valley Bank and Signature Bank,
when both collapsed in 2023.

In sync with this, Capital One estimated in July 2025 that it
might have to reserve an additional $200 million. The main concern
of the dispute was whether Capital One understated its level of
uninsured deposits by excluding a $56-billion position between two
subsidiaries from regulatory filings that describe its financial
condition.

In September,
UBS Group AG
UBS agreed to
pay E835 million ($986.8 million) to resolve a long-running French
tax case concerning its cross-border business activities between
2004 and 2012.

UBS Group AG agreed to pay a E730-million ($862.7 million) fine
and E105 million ($124.1 million) in civil damages to the French
state. UBS Group AG stated that the matter is fully provisioned and
its resolution is consistent with its strategy of addressing legacy
issues in the best interests of all stakeholders.

JPMorgan's Price Performance, Valuation & Estimates

JPMorgan shares have gained 21.8% over the past year compared
with the

industry's growth of 24%.

Price Performance

Image
Source: Zacks Investment Research

From a valuation standpoint, JPM trades at a 12-month trailing
price-to-tangible book (P/TB) of 2.82X, below the industry
average.

Price-to-Tangible Book TTM

Image
Source: Zacks Investment Research

The Zacks Consensus Estimate for JPMorgan's 2026 earnings calls
for a 6.8% rise on a year-over-year basis, while 2027 earnings are
expected to grow 7.7%. In the past 30 days, earnings estimates for
2026 and 2027 have moved upward.

Estimate Revision Trend

Image
Source: Zacks Investment Research

JPM currently carries a Zacks Rank #2 (Buy). You can see

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JPMorgan Chase & Co. (JPM): Free Stock Analysis Report

Capital One Financial Corporation (COF): Free Stock Analysis
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UBS Group AG (UBS): Free Stock Analysis Report

This article originally published on Zacks Investment Research
(zacks.com).

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