SEC Charges Two Firms with $130 Million Crypto Fraud Using Fake Filings

The U.S. Securities and Exchange Commission announced on Oct. 29 that two entities—BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd—have been charged for a fraud scheme that raised more than $130 million from tens of thousands of retail investors.

The complaint says the companies, incorporated in Colorado but operated abroad, promised risk‑free, high returns from a so‑called “wealth‑sharing program” that relied on alleged crypto‑trading signals. They claimed to be a massive hedge fund and a licensed crypto exchange, but the SEC says those claims were false.

How the Scheme Worked

According to the SEC, the defendants filed false Form ADV and Form D documents with the agency. Those filings were publicly viewable and were shown to investors as proof of SEC registration. The fraudsters also used social media, encrypted messaging, weekly video conferences and a mobile app to keep investors engaged. They displayed counterfeit SEC certificates and even made periodic payments to a few investors to create a Ponzi‑like appearance while siphoning the rest of the money.

Legal Allegations

The complaint, filed in the U.S. District Court for the Northern District of California, accuses both companies of violating the anti‑fraud 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 seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and conduct‑based injunctions against BG Wealth.

What This Means for Investors

Investors who were contacted by BG Wealth or DSJ Exchange should verify any investment adviser’s registration on Investor.gov. The SEC warns that scammers often misuse exempt reporting adviser filings to appear legitimate. If you suspect you were solicited, keep all communications, payment records, and screenshots of the false filings. You may also report the fraud to the SEC’s Office of Investor Education and Assistance.

Next Steps and Legal Help

The SEC has removed the false Form ADV and Form D filings from its website. While the companies are only charged at this stage, the allegations are serious. If you invested money or received communications from these entities, consider consulting a securities‑law attorney to assess your options, including possible recovery actions.

This article is general information based on U.S. Securities and Exchange Commission and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 30, 2026.