SEC Sues BG Wealth and DSJ Exchange Over Alleged $130 Million Crypto Fraud
SEC sues BG Wealth and DSJ Exchange over an alleged $130 million crypto fraud that used false filings to mislead tens of thousands of retail investors.
Summary
In Litigation Release No. 26679 dated October 30, 2026, the SEC said it filed No. 3:26-cv-12746 on October 29 in the U.S. District Court for the Northern District of California against foreign operated, Colorado incorporated BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd. The complaint alleges they raised more than $130 million from tens of thousands of retail investors in over 40 states and multiple U.S. territories from at least October 2025 through June 2026.
They allegedly promoted a “wealth sharing program” promising extraordinary, risk free crypto returns from SI-generated “signals.” BG Wealth falsely claimed it was the world’s largest hedge fund, an SEC registered investment adviser, and partnered with DSJ Exchange as a licensed, secure crypto platform. The defendants allegedly filed false, public Form ADV and Form D disclosures and shared them as proof of SEC licensing or approval, although neither entity was registered and the filings contained false information.
The SEC alleges both defendants violated the antifraud provisions of the Securities Act of 1933 and Securities Exchange Act of 1934, while BG Wealth violated Investment Advisers Act Sections 204(a) and 207. It seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and conduct based injunctions against BG Wealth; both filings were removed. Cyber and Emerging Technologies Unit investigators Madiha M. Zuberi and Kathleen Hitchins worked with Thomas Bedkowski and Sejal Bhakta under Erin E. Wilk and Laura D’Allaird; Russell O’Brien leads litigation under Jason Bussey. Assistance came from the Alberta Securities Commission and securities regulators in Hawaii, Texas, Utah, Washington, Wisconsin, and elsewhere. The SEC warned about misuse of exempt reporting adviser filings and directed investors to Investor.gov.
Positives
- The October 29 complaint seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and conduct based restrictions against BG Wealth.
- The SEC removed BG Wealth’s Form ADV and DSJ Exchange’s Form D from its website.
- Regulators in Alberta, Hawaii, Texas, Utah, Washington, and Wisconsin assisted the SEC’s ongoing investigation.
- The SEC issued an investor warning about scammers misusing exempt reporting adviser filings to create false legitimacy.
Risks & concerns
- More than $130 million was allegedly raised from tens of thousands of retail investors through the purported wealth sharing program.
- Investors across over 40 states and multiple U.S. territories were allegedly exposed between at least October 2025 and June 2026.
- BG Wealth allegedly promised extraordinary, risk free crypto returns generated by SI-generated trading signals.
- False Form ADV and Form D filings were allegedly shared as proof of SEC licensing or approval.
- Neither BG Wealth nor DSJ Exchange was SEC registered despite alleged claims implying registration, licensing, or approval.
