Bitcoin Magazine
SEC Charges Two Companies in $130 Million Crypto Trading Scheme
The Securities and Exchange Commission charged two foreign-operated, Colorado-incorporated companies with running a crypto investment fraud that used false federal filings to raise more than $130 million from tens of thousands of retail investors.
The defendants are BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd. A complaint filed in the U.S. District Court for the Northern District of California alleges that from at least October 2025 through June 2026, the companies induced investors in more than 40 states and several U.S. territories to join a “wealth-sharing program.”
Participants were promised risk-free returns generated by so-called signals for crypto asset trading.
According to the complaint, BG Wealth claimed to be the world’s largest hedge fund, claimed registration with the SEC as an investment adviser, and said it partnered with a licensed and secure crypto trading platform, DSJ Exchange.
The SEC says none of those claims were true. The complaint alleges the companies submitted false Form ADV and Form D filings to the SEC. Those filings were viewable on the agency’s website and shared with investors as evidence that the SEC had licensed or approved the firms.
Laura D’Allaird, chief of the SEC Enforcement Division’s Cyber and Emerging Technologies Unit, described the operation in a statement.
“This alleged scheme was well-planned,” she said, citing social media, encrypted messaging channels, weekly live videoconferences and a mobile app used to engage investors. The complaint alleges the defendants displayed fake certificates bearing the SEC’s seal and made periodic payments to some investors, “a Ponzi-like tactic,” while misappropriating the remaining funds.
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