SEC charges BG Wealth and DSJ Exchange over $130 million crypto signals scheme built on false SEC filings

The US Securities and Exchange Commission charged BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd on October 29, 2026, alleging they ran a fraud scheme that raised more than $130 million from tens of thousands of retail investors. The SEC describes both as foreign-operated entities incorporated in Colorado.

What the SEC alleges

According to the complaint, from at least October 2025 through June 2026 the two entities drew investors, many of them in more than 40 US states and several US territories, into a “wealth-sharing program” that promised extraordinary, risk-free returns from crypto trading “signals” said to be generated by SI.

The SEC says BG Wealth claimed to be the world’s largest hedge fund, to be registered with the SEC as an investment adviser, and to be partnered with a licensed and secure crypto trading platform, DSJ Exchange. The complaint alleges none of that was true. To look legitimate, the defendants allegedly submitted false Form ADV and Form D filings to the SEC, which were publicly viewable, and shared them with investors as supposed proof that the SEC had licensed or approved them.

The SEC also alleges the scheme displayed fake certificates bearing the SEC’s seal and made periodic payments to some investors, which it calls a Ponzi-like tactic, while misappropriating the rest of the money. The promotion ran across social media, encrypted messaging channels, weekly live video calls and a mobile app.

The complaint, filed in the US District Court for the Northern District of California, charges both entities with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, and charges BG Wealth under the Investment Advisers Act of 1940. The SEC is seeking permanent injunctions, disgorgement with prejudgment interest and civil penalties. These are allegations at the complaint stage.

What it means for traders

A filing on the SEC’s website is not an approval. The SEC notes that its investor education office has warned that scammers use exempt reporting adviser filings to create a false impression of legitimacy, and it has removed the Form ADV and Form D filed by the two entities. The SEC encourages investors to check anyone offering an investment on Investor.gov. Our guide on how to check a broker’s licence walks through the same checks for trading firms.