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 €835 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 €730-million ($862.7 million) fine and €105 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 the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include

Stock #1: A Disruptive Force with Notable Growth and Resilience

Stock #2: Bullish Signs Signaling to Buy the Dip

Stock #3: One of the Most Compelling Investments in the Market

Stock #4: Leader In a Red-Hot Industry Poised for Growth

Stock #5: Modern Omni-Channel Platform Coiled to Spring

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.

See Our Newest 5 Stocks Set to Double Picks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

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

UBS Group AG (UBS): Free Stock Analysis Report

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

Zacks Investment Research