SEC sues BG Wealth Sharing and DSJ Exchange over alleged $130M crypto scheme using fake SEC credentials
The SEC alleges in a complaint filed 29 October 2026 that BG Wealth Sharing Ltd and DSJ Exchange PTY Ltd ran a fraudulent crypto investment scheme, using fake SEC credentials, that took over $130 million. These are allegations, not findings.
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Source: investmentnews.com · published
What happened
InvestmentNews reported on 30 October 2026 that the US Securities and Exchange Commission (SEC) filed a civil complaint on 29 October 2026 in the US District Court for the Northern District of California against BG Wealth Sharing Ltd and DSJ Exchange PTY Ltd. The SEC alleges the two ran what it calls a “fraudulent investment confidence scheme” between October 2025 and June 2026, collecting more than $130 million from investors in the US and abroad. These are allegations in a complaint; they have not been tested in court, no court has ruled on the merits, and the defendants have not been found liable. Our own article on the case, “'SEC-Licensed,' 60% a Month, 'Zero Risk': SEC Says BG Wealth Used Its Own Filing System to Fake Legitimacy”, is at scammers.com/articles/bg-wealth-sharing-dsj-exchange-fake-sec-filings-crypto-scheme.
How the scam works
According to the complaint as reported, BG Wealth marketed itself as “the world's largest hedge fund” and an SEC-licensed advisor, promised returns of “at least 60%” a month with “zero risk”, and claimed its AI-generated crypto trading signals were 99.6% accurate. The SEC alleges that DSJ Exchange's trading platform showed fabricated transactions, profits and balances, that the defendants misappropriated most investor assets, and that no more than $25 million went back to wallets likely tied to investors in “Ponzi-like payments”. It also alleges that the defendants filed a Form ADV and a Form D with the SEC and created certificates bearing the SEC's seal, then pointed investors to the SEC's own filing databases to “verify” them, although a Form ADV or Form D filing is not an SEC licence or approval.
The SEC says the scheme ran through a 12-level multi-level marketing structure and collected funds from more than 223,000 blockchain addresses across more than 40 US states. It alleges that withdrawals were hit with fees of up to 20%, were then blocked, and that investors were asked for extra “tax” payments and new deposits to “migrate” to a new platform, after which they still could not withdraw. It adds that the operation continued after warnings from at least seven foreign regulators and cease-and-desist orders from several states. The SEC alleges investor losses of more than $100 million and seeks injunctions, disgorgement and civil penalties.
Source
InvestmentNews, “SEC alleges fake hedge fund forged seals to steal $130M”, 30 October 2026, reporting the SEC's complaint filed 29 October 2026.
Red flags
- A fund that calls itself “the world's largest hedge fund” and promises returns of at least 60% a month with “zero risk”.
- Claims of SEC licensing, backed by certificates bearing the SEC's seal or by Form ADV or Form D filings.
- Trading “signals” with a claimed accuracy of 99.6%.
- A multi-level recruitment structure that pays bonuses and commissions for bringing in new investors.
- Withdrawal fees, then blocks, then demands for “tax” payments or new deposits to “migrate” to a new platform.
If you were targeted
- 1Remember that an SEC filing such as Form ADV or Form D is not an SEC licence or approval of the filer.
- 2Check any adviser on the SEC's Investment Adviser Public Disclosure site and with your state regulator before investing.
- 3Do not pay “tax” or migration fees to release a balance that you cannot withdraw.
- 4If you invested, keep records of wallet addresses, chats and transfers, and report to the SEC and the FBI's IC3.
- 5Treat guaranteed returns and recruitment bonuses as warning signs.