SEC charges two firms over $130 million crypto 'wealth-sharing' scheme that used false SEC filings
The US Securities and Exchange Commission has charged BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd, alleging they raised more than $130 million from tens of thousands of retail investors with promises of risk-free crypto trading returns, and filed false forms with the SEC to look licensed.
The US Securities and Exchange Commission (SEC) has charged two companies, BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd, with running a fraud that it says raised more than $130 million from tens of thousands of retail investors, according to a litigation release dated 30 October.
The complaint was filed on 29 October in the US District Court for the Northern District of California. The SEC describes both firms as foreign-operated companies incorporated in Colorado. Neither has responded publicly to the charges in the sources cited here, and the allegations have not been tested in court.
The allegations. According to the SEC, from at least October 2025 to June 2026 the two firms drew investors in more than 40 US states and several US territories into a “wealth-sharing program” that promised extraordinary, risk-free returns from crypto trading “signals”. The SEC says BG Wealth falsely claimed to be the world’s largest hedge fund, to be registered with the SEC as an investment adviser and to be partnered with a licensed crypto trading platform, DSJ Exchange.
The SEC says the firms submitted false Form ADV and Form D filings, which were publicly viewable on its website and were shown to investors as supposed proof that the SEC had licensed or approved them. Neither firm was registered with the SEC, it said. The filings have since been removed from the SEC’s website.
What the SEC is seeking. The complaint alleges violations of the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, and charges BG Wealth under the Investment Advisers Act of 1940. The SEC is seeking permanent injunctions, disgorgement with interest and civil penalties. It said the case was handled by its Cyber and Emerging Technologies Unit, with help from regulators including the Alberta Securities Commission and several US state agencies.
The SEC said it has issued investor alerts warning that scammers are using adviser filings to suggest false SEC registration, and urged investors to check firms on Investor.gov.
Sources
- SEC v. BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd (Litigation Release No. 26679) · US Securities and Exchange Commission
- Fraudulent Crypto Investment Scheme Drew $130 Million, SEC Says · Bloomberg Law
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