SEC charges BG Wealth and DSJ Exchange over $130m crypto fraud

The Securities and Exchange Commission on 29 October 2026 charged BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd with a fraud scheme that allegedly raised more than $130m from tens of thousands of retail investors. The SEC complaint, filed in the US District Court for the Northern District of California, covers conduct from at least October 2025 through June 2026 and says investors were located in more than 40 US states and several territories.

Both foreign-operated entities were incorporated in Colorado. The SEC alleges they marketed a “wealth-sharing program” promising extraordinary, risk-free returns from supposedly SI-generated crypto-trading “signals”. BG Wealth also allegedly claimed to be the world’s largest hedge fund and an SEC-registered investment adviser, while DSJ Exchange was presented as a licensed and secure crypto trading platform.

For compliance teams, the case shows that public regulatory filings can be weaponised as apparent evidence of legitimacy. The SEC says the entities submitted false Form ADV and Form D filings, which were publicly viewable and shared with investors as supposed proof that the Commission had licensed or approved them. The SEC has since removed both filings from its website. Its Office of Investor Education and Assistance has separately warned that scammers use exempt reporting adviser filings to create a false impression of SEC registration.

How the alleged scheme worked

The SEC alleges that the defendants used social media, encrypted messaging channels, weekly live videoconferences and a mobile app to keep investors engaged. They allegedly displayed fake certificates bearing the SEC’s seal and made periodic payments to some investors while misappropriating the remaining funds.

Laura D’Allaird, chief of the SEC Enforcement Division’s Cyber and Emerging Technologies Unit, described the payments as a “Ponzi-like tactic”. The statement is an allegation in the SEC’s complaint, not a final court finding.

The complaint charges both entities with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. BG Wealth is also charged with violating sections 204(a) and 207 of the Investment Advisers Act of 1940. The SEC alleges that the claimed registration, size and partnership arrangements were untrue.

Relief sought and investor checks

The SEC is seeking permanent injunctions, disgorgement with prejudgment interest and civil penalties against both defendants. It also seeks conduct-based injunctions against BG Wealth.

The Commission encourages investors to check the background of anyone offering or selling an investment through Investor.gov. The SEC also credited assistance from securities and financial regulators in Alberta, Hawaii, Texas, Utah, Washington and Wisconsin.