The U.S. Securities and Exchange Commission (SEC) accused two companies operated by foreigners and registered in Colorado of engaging in crypto investment fraud, claiming that they raised over $130 million from tens of thousands of retail investors through fraudulent federal filing documents.
The defendants are BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd. A complaint filed with the United States District Court for the Northern District of California alleges that from at least October 2025 to June 2026, these two companies induced investors from over 40 states and several U.S. territories to join a "wealth sharing program."
Participants were promised risk-free returns generated by so-called “signals” from cryptocurrency asset trading.
According to the complaint, BG Wealth claims to be the largest hedge fund in the world, stating that it has registered as an investment advisor in SEC and indicates that it collaborates with a licensed and secure cryptocurrency trading platform, DSJ Exchange.
SEC indicates that none of these claims are true. The complaint alleges that the two companies submitted false Form ADV and Form D documents to SEC. These documents can be viewed on the website of that institution and were shared with investors as evidence that SEC has granted licenses or approvals to these companies.
The heads of the law enforcement department and the emerging technologies department, SEC and Laura D, respectively, described this operation in a statement. Allaird
SEC: This crypto scam is "a type of Ponzi scheme"
She said, "This so-called scam was carefully planned," and mentioned social media, encrypted communication channels, weekly video conferences, as well as mobile applications used to contact investors. The complaint alleges that the defendants displayed forged certificates with the SEC stamp and made regular payments to some investors, "which is a tactic similar to a Ponzi scheme," while misappropriating the remaining funds.
SEC accuses two companies of violating the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.
SEC also accused BG Wealth of violating Sections 204(a) and 207 of the 1940 Investment Advisors Act. The agency sought a permanent ban against both companies, the return of illicit gains and pre-sentence interest, as well as civil fines; it also requested a conduct-based ban against BG Wealth.
The Form ADV and Form D files on the SEC website have been removed.
SEC The Investor Education and Assistance Office has issued a warning to investors, reminding them that scammers are using exemption reporting advisor documents to create an illusion of legitimacy. The organization encourages investors to verify the background of anyone providing or selling crypto through Investor.gov.
SEC indicates that assistance was provided by the Alberta Securities Commission, the Hawaii Department of Business and Consumer Affairs, the Texas Securities Commission, the Utah Securities Commission, the Washington State Department of Financial Institutions, the Wisconsin Department of Financial Institutions, and other organizations.
