SEC charges BG Wealth Sharing and DSJ Exchange in $130 million crypto fraud scheme

The SEC charged Colorado-incorporated BG Wealth Sharing and DSJ Exchange on October 29, 2026, for operating a $130 million crypto trading fraud. The firms allegedly misled over 223,000 investors across 40 U.S. states using false Form ADV and Form D public filings, alongside fake certificates bearing the SEC seal, to claim official approval. Investors suffered over $100 million in net losses after facing blocked withdrawals and demands for bogus fees.

SEC charges and requested legal remedies

• ▪The Securities and Exchange Commission charged BG Wealth Sharing Ltd. with violating the Investment Advisers Act of 1940 and seeks an order barring it from filing future Forms ADV as an exempt reporting adviser.
• ▪The SEC charged BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd. with running a $130 million crypto investment fraud
• ▪The Securities and Exchange Commission charged Colorado-incorporated BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd. with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.
• ▪The Securities and Exchange Commission seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil monetary penalties against both BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd.

Scope of fraud and financial losses

• ▪BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd. collected over $130 million from more than 223,000 blockchain addresses between March and mid-June 2026 across over 40 U.S. states and several territories.
• ▪The SEC estimates investor losses exceed $100 million, with no more than $25 million returning to investor-tied wallets as Ponzi-like payments.

Investment promises and scheme operations

• ▪BG Wealth Sharing Ltd. directed participants to deposit crypto assets into accounts on DSJ Exchange, where DSJ displayed fabricated transactions and profits rather than executing actual trades.
• ▪BG Wealth Sharing Ltd. claimed to be the world's largest hedge fund and promised investors risk-free returns of at least 60% per month through trading signals generated by an artificial intelligence system.
• ▪BG Wealth Sharing Ltd. expanded its investor base using a multilevel marketing structure, offering extra signals, bonuses, and commissions for recruiting new members, along with encrypted messaging and live videoconferences.

Misuse and falsification of SEC filings

• ▪The SEC stated that BG Wealth Sharing Ltd.'s Form ADV filing contained false information, including listing a virtual mailbox as its main office and naming an auditor that appears in no public registry.
• ▪The SEC removed the Form ADV and Form D filings submitted by BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd. from its public website.
• ▪BG Wealth Sharing Ltd. filed a Form ADV as an exempt reporting adviser in August 2025, and DSJ Exchange Pty Ltd. submitted a Form D notifying a purported $100 million offering.
• ▪BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd. directed investors to check their filings on the SEC website as proof of SEC licensing or approval, though neither filing confers agency approval.

Fabricated SEC registration certificates

• ▪Laura D'Allaird of the SEC Enforcement Division stated that BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd. displayed fake SEC certificates while making periodic Ponzi-like payments to investors to maintain confidence.
• ▪BG Wealth Sharing Ltd. displayed fake registration certificates stamped with the Securities and Exchange Commission seal on its website, though the agency does not issue registration certificates.

Withdrawal restrictions and fees

• ▪Before blocking withdrawals entirely, DSJ Exchange Pty Ltd. initially allowed investors to make some withdrawals while subjecting them to delays and fees of up to 20%.
• ▪DSJ Exchange Pty Ltd. blocked withdrawals and required investors to pay extra fees or a fake tax to unlock accounts, but those who paid were still unable to withdraw funds.

State and provincial regulatory involvement

• ▪State and provincial regulators in Alberta, Hawaii, Texas, Utah, Washington, and Wisconsin provided assistance to the Securities and Exchange Commission in its investigation.
• ▪At least seven U.S. state regulators and seven foreign regulators have issued warnings or enforcement orders against the BG Wealth and DSJ Exchange scheme.