SEC charges BG Wealth and DSJ Exchange over alleged $130 million crypto scheme
CIE News ·
Based on an official regulatory or court filing. The allegations have not been ruled on by a court.
The SEC charged BG Wealth Sharing and DSJ Exchange for an alleged $130 million crypto scheme that lured retail investors with false regulatory filings and promises of risk-free trading returns.
The SEC filed charges in the U.S. District Court for the Northern District of California against BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd, accusing the entities of orchestrating a $130 million fraudulent scheme between October 2025 and June 2026. The regulator alleges that the Colorado-incorporated firms solicited crypto assets including Tether (USDT), USD Coin (USDC), and Ethereum (ETH) from retail investors across more than 40 U.S. states and territories. According to The Defiant, investors lost more than $100 million in the operation.
Regulators claim the defendants lured participants with promises of 60% monthly returns and risk-free automated trading signals, falsely portraying BG Wealth as the world's largest hedge fund and claiming it was a registered investment adviser partnered with a licensed exchange. To fabricate legitimacy, the entities submitted misleading Form ADV and Form D filings to the SEC and displayed forged certificates bearing the agency's seal. Laura D'Allaird, Chief of the SEC Enforcement Division's Cyber and Emerging Technologies Unit, stated that the defendants promoted the offer via social media, live videoconferences, and a mobile app while returning $25 million to certain investors to sustain a Ponzi-like structure.
The complaint charges both companies with violating antifraud provisions of federal securities laws, alongside investment adviser violations by BG Wealth. The SEC is seeking permanent injunctions, civil penalties, and the return of ill-gotten gains with interest.
Key facts
- $130M misappropriated
- Over $100M lost
- 60% monthly return promised
- SEC filed civil fraud charges