SEC Charges Companies in $130 Million Cryptocurrency Fraud Scheme, Highlights Investor Scams
The SEC has charged BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd for orchestrating a fraudulent scheme that defrauded investors out of over $130 million through a fake wealth-sharing program. These companies falsely claimed SEC registration and promised extraordinary, risk-free returns from cryptocurrency trading using fictitious signals. They misled investors with fraudulent SEC filings and various communication channels, including social media and mobile apps, to appear legitimate. The SEC's complaint alleges violations of multiple securities laws and seeks penalties and a permanent ban on their operations. This case underscores the dangers of scams that exploit SEC filings to mislead investors.
Statement Summary
The SEC has charged two foreign entities, BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd, for running a fraudulent scheme that deceived investors into participating in a bogus wealth-sharing program, raising over $130 million. These companies falsely claimed to be registered with the SEC and purported to offer risk-free returns from crypto trading based on fake signals. They used misleading SEC filings and various communication methods to present themselves as legitimate, including social media and mobile apps. The SEC is pursuing legal action for violations of securities laws, seeking penalties and a permanent ban on their operations. This case serves as a warning to investors about the misuse of SEC filings to create fraudulent investment schemes.
Original Statement
The Securities and Exchange Commission today charged two foreign-operated, Colorado-incorporated entities, BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd, for orchestrating a fraud scheme that used false SEC filings to boost confidence in their investment program and helped them raise more than $130 million from tens of thousands of retail investors.
According to the SEC’s complaint, from at least October 2025 through June 2026, BG Wealth and DSJ Exchange induced investors, many located in more than 40 U.S. states and multiple U.S. territories, to participate in a supposed “wealth-sharing program” by promising extraordinary, risk-free returns generated by so-called SI-generated “signals” for crypto asset trading. In addition, BG Wealth claimed to be the world’s largest hedge fund, registered with the SEC as an investment adviser, and partnered with a purported licensed and secure crypto trading platform, DSJ Exchange. None of that was true, and the complaint alleges that the defendants created the appearance that they were legitimate entities by submitting false Form ADV and Form D filings to the SEC which were publicly viewable and shared with investors as supposed proof that the SEC had licensed or approved them.
“This alleged scheme was well-planned, as evidenced by how many different communications channels the defendants chose to broadcast to their target audiences. From social media and encrypted messaging channels to weekly live videoconferences and a mobile app, they were determined to keep investors engaged. They further sustained the ruse by displaying fake certificates with the SEC’s seal and making periodic payments to certain investors – a Ponzi-like tactic – while misappropriating the remaining funds,” said Laura D’Allaird, Chief of the SEC Enforcement Division’s Cyber and Emerging Technologies Unit.
The complaint, filed in the United States District Court for the Northern District of California, charges BG Wealth and DSJ Exchange with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, and charges BG Wealth with violating Sections 204(a) and 207 of the Investment Advisers Act of 1940. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both defendants and conduct-based injunctions against BG Wealth.
The SEC’s Office of Investor Education and Assistance has issued investor alerts warning investors that scammers are using SEC exempt reporting adviser filings to create a false impression of legitimacy and to lure investors into scams with false claims of SEC registration. The SEC encourages investors to use Investor.gov to check the background of anyone offering or selling them an investment.
Separately, the Form ADV filed by BG Wealth and the Form D filed by DSJ Exchange have been removed from the Commission website. The SEC appreciates the assistance of the Alberta Securities Commission; the Hawaii Department of Commerce and Consumer Affairs, Securities Enforcement Branch; the Texas State Securities Board; the Utah Department of Commerce, Division of Securities; the Washington State Department of Financial Institutions; and the Wisconsin Department of Financial Institutions, among other authorities and regulators.