The SEC charged two companies, BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd., with defrauding investors of over $130 million through a crypto investment scheme. Both companies were foreign-operated but incorporated in Colorado.
From at least October 2025 through June 2026, the defendants induced investors in more than 40 states and several U.S. territories to join a "wealth-sharing program" that promised risk-free returns from crypto trading signals.
BG Wealth falsely claimed to be the world's largest hedge fund, stated it was registered with the SEC as an investment adviser, and said it partnered with a licensed crypto trading platform called DSJ Exchange. None of these claims were true, according to the SEC complaint filed in the U.S. District Court for the Northern District of California.
The companies submitted false Form ADV and Form D filings to the SEC. These filings appeared on the SEC's website and were shared with investors as evidence of SEC approval. The SEC removed these filings from its website.
Laura D'Allaird, chief of the SEC Enforcement Division's Cyber and Emerging Technologies Unit, stated: "This alleged scheme was well-planned," citing the use of social media, encrypted messaging channels, weekly videoconferences, and a mobile app to engage investors. The complaint alleges the defendants displayed fake certificates bearing the SEC's seal and made periodic payments to some investors, "a Ponzi-like tactic," while misappropriating remaining funds.
The SEC charged both companies with violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. BG Wealth also faced charges under Sections 204(a) and 207 of the Investment Advisers Act of 1940. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and conduct-based injunctions against BG Wealth.
The SEC's Office of Investor Education and Assistance issued an alert warning that scammers use exempt reporting adviser filings to falsely appear legitimate. The agency encourages investors to verify backgrounds through Investor.gov.
Several state authorities assisted in the investigation, including the Alberta Securities Commission, Hawaii Department of Commerce and Consumer Affairs, Texas State Securities Board, Utah Division of Securities, Washington State Department of Financial Institutions, and Wisconsin Department of Financial Institutions.