SEC Charges Two Companies in $130 Million Crypto Trading Scheme
SEC charges two companies in $130 million crypto scheme
The U.S. Securities and Exchange Commission has charged two companies with defrauding investors of more than $130 million through a crypto investment scheme.
The defendants are BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd., both incorporated in Colorado but operated from abroad. A complaint filed in the U.S. District Court for the Northern District of California says the firms ran a "wealth-sharing program" from at least October 2025 through June 2026.
Key points from the case
- The companies raised over $130 million from tens of thousands of retail investors across more than 40 states and several U.S. territories.
- Investors were promised risk-free returns from crypto asset trading signals, which are tips about buying and selling digital currencies.
- The SEC says the companies made false claims about being registered with the agency and partnered with a licensed crypto trading platform.
- The complaint alleges the defendants showed fake certificates bearing the SEC's seal and made periodic payments to some investors, what the SEC called a Ponzi-like tactic, while misappropriating the remaining funds.
- The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, civil penalties, and conduct-based injunctions against BG Wealth.
What the SEC complaint says
The SEC charged both companies with violating 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.
Laura D'Allaird, chief of the SEC Enforcement Division's Cyber and Emerging Technologies Unit, said the scheme used social media, encrypted messaging channels, weekly live videoconferences, and a mobile app to reach investors. The complaint alleges the defendants showed fake certificates bearing the SEC's seal and made periodic payments to some investors while misappropriating the remaining funds.
Confirmed facts
- The SEC filed the complaint in the U.S. District Court for the Northern District of California.
- The alleged scheme ran from at least October 2025 through June 2026.
- The companies submitted false Form ADV and Form D filings to the SEC, which were viewable on the agency's website.
- The false filings have since been removed from the SEC website.
- The SEC received assistance from state authorities including the Alberta Securities Commission, the Hawaii Department of Commerce and Consumer Affairs, the Texas State Securities Board, the Utah Division of Securities, the Washington State Department of Financial Institutions, and the Wisconsin Department of Financial Institutions.
What is still unclear
- The sources do not say whether any individuals have been charged or arrested.
- The sources do not say how much of the $130 million, if any, may be returned to investors.
- The sources do not provide a timeline for the court case.
Why this matters for investors
The SEC's Office of Investor Education and Assistance has warned that scammers are using exempt reporting adviser filings to create a false impression of legitimacy. The agency encourages investors to check the background of anyone offering or selling a crypto investment through Investor.gov.
Sources and further reading
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.