The Securities and Exchange Commission (SEC) has accused two foreign-operated companies incorporated in Colorado of orchestrating a crypto investment fraud that swindled over $130 million from tens of thousands of retail investors. The defendants, BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd., allegedly lured investors into a so-called “wealth-sharing program” that promised risk-free returns through crypto trading signals.
According to the SEC’s complaint filed in the U.S. District Court for the Northern District of California, the scheme ran from at least October 2025 through June 2026. The companies falsely claimed BG Wealth was the world’s largest hedge fund, registered with the SEC as an investment adviser, and partnered with a licensed crypto trading platform, DSJ Exchange. None of these claims were true.
The SEC alleges the companies submitted false federal filings, including Form ADV and Form D, which were displayed on the agency’s website and shared with investors to create a false impression of legitimacy. The defendants also used social media, encrypted messaging, live videoconferences, and a mobile app to engage investors, while displaying fake SEC certificates and making periodic payments to some investors, a tactic described as “Ponzi-like.”
The SEC charged both companies with violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. It also charged BG Wealth with violating the Investment Advisers Act of 1940. The agency seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both companies, along with conduct-based injunctions against BG Wealth.