SEC Files Charges Against Two Companies for $130 Million Crypto Fraud Scheme

The U.S. Securities and Exchange Commission (SEC) has filed charges against two companies, BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd., for allegedly running a fraudulent crypto investment scheme that raised over $130 million from investors across more than 40 states.

According to the SEC's complaint, the companies, which are foreign-operated but incorporated in Colorado, misled investors by claiming to be part of a legitimate wealth-sharing program that promised risk-free returns through crypto asset trading signals. The complaint details that from October 2025 to June 2026, the defendants falsely asserted that BG Wealth was the world’s largest hedge fund and claimed registration with the SEC as an investment adviser.

The SEC alleges that the companies submitted false filings, including Form ADV and Form D, to create an illusion of legitimacy, which were accessible on the SEC’s website. Laura D’Allaird, chief of the SEC Enforcement Division’s Cyber and Emerging Technologies Unit, characterized the operation as a well-planned scheme that utilized social media, encrypted messaging, and a mobile app to engage with investors.

Furthermore, the complaint describes the use of fake certificates bearing the SEC’s seal and periodic payments to some investors, which the SEC labeled as a “Ponzi-like tactic.” The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both companies, along with conduct-based injunctions against BG Wealth.

The SEC has also removed the fraudulent filings from its website and issued alerts to warn investors about the misuse of exempt reporting adviser filings by scammers. The agency encourages investors to verify the backgrounds of anyone offering crypto investments through its Investor.gov platform.

Assistance in the investigation was provided by several state securities regulators, including those from Alberta, Hawaii, Texas, Utah, Washington, and Wisconsin.