SEC Charges Two Entities in Alleged $130 Million Investment Fraud

The U.S. Securities and Exchange Commission (SEC) has charged BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd with allegedly raising more than $130 million from tens of thousands of retail investors through a purported crypto investment program. The foreign-operated, Colorado-incorporated entities promised extraordinary, risk-free returns from artificial-intelligence-generated trading “signals,” according to a complaint filed in the U.S. District Court for the Northern District of California. Investors were located in more than 40 states and multiple U.S. territories. The SEC alleges that BG Wealth falsely claimed to be the world’s largest hedge fund and an SEC-registered investment adviser, while presenting DSJ Exchange as a licensed, secure crypto trading platform. The complaint says the entities submitted false Form ADV and Form D filings, then shared the publicly viewable documents with investors as supposed evidence of SEC approval. The filings have since been removed from the Commission’s website. According to the complaint, the scheme ran from at least October 2025 through June 2026. The defendants used social media, encrypted messaging, weekly live videoconferences and a mobile app to engage investors. The SEC also alleges they displayed fake certificates bearing the Commission’s seal and made periodic payments to some investors while misappropriating the remaining funds. The SEC charged both entities with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. BG Wealth also faces charges under Sections 204(a) and 207 of the Investment Advisers Act of 1940. The complaint seeks permanent injunctions, disgorgement with prejudgment interest and civil penalties against both entities, along with conduct-based injunctions against BG Wealth. The SEC urged investors to check investment sellers through Investor.gov and said its investor education office has warned about scams that use exempt reporting adviser filings to imply SEC registration.