SEC Charges BG Wealth and DSJ Exchange in $130 Million Crypto Investment Fraud

The Securities and Exchange Commission charged BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd on October 29, 2026, in an alleged investment fraud that raised more than $130 million from tens of thousands of retail investors. Both firms were incorporated in Colorado and operated from abroad. According to the complaint, the defendants recruited investors from at least October 2025 through June 2026 into a purported wealth-sharing program. Many investors were in more than 40 U.S. states and multiple U.S. territories. The defendants promised exceptional returns with no risk from crypto asset trading based on so-called SI-generated signals. The complaint alleges that BG Wealth falsely called itself the largest hedge fund worldwide and an SEC-registered investment adviser. BG Wealth also claimed a partnership with DSJ Exchange and presented the firm as a licensed, secure crypto trading platform. Neither defendant held SEC registration, according to the complaint. The defendants filed false Forms ADV and D with the SEC to make the businesses appear legitimate, the complaint alleges. The filings were publicly accessible and were circulated to investors as purported evidence of SEC licensing or approval. They included false information, the SEC alleges. The SEC website has separately removed the Form ADV filed by BG Wealth and the Form D filed by DSJ Exchange. The SEC filed the complaint in the U.S. District Court for the Northern District of California. It charges both defendants under the anti-fraud 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 SEC seeks permanent injunctions, disgorgement with prejudgment interest and civil penalties against both defendants. It also seeks conduct-based injunctions against BG Wealth. The SEC Office of Investor Education and Assistance has issued alerts about scammers misusing exempt reporting adviser filings to appear legitimate. The alerts warn that scammers falsely claim SEC registration to attract investors. The SEC urges investors to check the backgrounds of people offering or selling investments through its investor-information website. The investigation remains ongoing.