The Securities and Exchange Commission charged two companies, BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd., with operating a $130 million crypto investment fraud. Both firms were Colorado-incorporated but foreign-operated.
From October 2025 through June 2026, the defendants allegedly induced investors across more than 40 states and several U.S. territories to join a "wealth-sharing program" promising risk-free returns from cryptocurrency trading signals. BG Wealth claimed to be the world's largest hedge fund, said it registered with the SEC as an investment adviser, and stated it partnered with a licensed crypto trading platform. The SEC says all three claims were false.
The complaint alleges the companies filed false Form ADV and Form D documents with the SEC. Investors received those filings as proof the SEC had licensed or approved the firms. The SEC removed both filings from its website.
Laura D'Allaird, chief of the SEC Enforcement Division's Cyber and Emerging Technologies Unit, said the scheme was "well-planned" and used social media, encrypted messaging, 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 as "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. It charged BG Wealth with violating the Investment Advisers Act of 1940. The agency seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and conduct-based injunctions against BG Wealth.
The SEC received assistance from state regulators 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. The agency encourages investors to verify the background of crypto investment sellers through Investor.gov.