The Securities and Exchange Commission charged BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd over an alleged crypto investment fraud that raised more than $130 million. The SEC says the entities used false public filings, fake certificates and promises of risk-free returns to build investor confidence.

The SEC announced the charges October 29, 2026. Its litigation release followed October 30, while the complaint covers alleged conduct from at least October 2025 through June 2026.

What the SEC Alleges

The SEC’s October 29 announcement identifies BG Wealth and DSJ Exchange as foreign-operated, Colorado-incorporated entities. The regulator says they promoted a supposed wealth-sharing program to tens of thousands of retail investors.

The program allegedly promised extraordinary, risk-free returns from so-called AI-generated signals for crypto trading. BG Wealth also claimed it was the world’s largest hedge fund, an SEC-registered investment adviser and a partner of a licensed crypto platform. The SEC says those claims were false.

The allegations remain unproven and will be tested in federal court. The complaint was filed in the U.S. District Court for the Northern District of California.

How False Filings Built Confidence

The SEC says the defendants filed false Form ADV and Form D documents that appeared publicly on the regulator’s website. Promoters allegedly circulated those filings as evidence that the entities were licensed or approved by the SEC.

The regulator also alleges the scheme used social media, encrypted messaging, weekly video conferences, a mobile application and fake certificates carrying the SEC seal. Periodic payments to some investors allegedly helped sustain the appearance of legitimate returns.

The case highlights why a filing does not equal regulatory approval. Investors can check registration and disciplinary information through Investor.gov, but they should also verify identities, disclosures and claims independently.

What the Complaint Seeks

The complaint charges both entities with violations of the antifraud provisions of the Securities Act and Exchange Act. BG Wealth also faces allegations under Sections 204(a) and 207 of the Investment Advisers Act.

The SEC seeks permanent injunctions, disgorgement with prejudgment interest and civil penalties. It also seeks conduct-based injunctions against BG Wealth. The regulator removed the disputed Form ADV and Form D filings from its website.

The case follows heightened scrutiny of crypto platforms after the Binance security incident and comes as public companies such as Coinbase report growing trading activity. It also adds to international compliance pressure reflected in the FCA’s authorization timetable.

Featured image credit: Beatriz Pérez Moya/Unsplash.

Sharron Kendi is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence.