More Than $130 Million From Tens of Thousands of Investors: SEC Charges BG Wealth and DSJ Exchange in Scheme That Used False SEC Filings to Look Approved
The U.S. Securities and Exchange Commission (SEC) announced on October 29 that it has charged BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd., two foreign-operated entities incorporated in Colorado, with orchestrating an investment fraud scheme that used false SEC filings to boost investor confidence and raised more than $130 million from tens of thousands of retail investors. The complaint was filed in the U.S. District Court for the Northern District of California.
According to the SEC's complaint, from at least October 2025 through June 2026, BG Wealth and DSJ Exchange induced investors, many located in more than 40 U.S. states and multiple U.S. territories, to participate in a supposed "wealth-sharing program" by promising extraordinary, risk-free returns generated by so-called SI-generated "signals" for crypto asset trading. BG Wealth also claimed to be the world's largest hedge fund, claimed to be registered with the SEC as an investment adviser, and claimed to be partnered with DSJ Exchange, a purported licensed and secure crypto trading platform. The SEC says none of that was true, and neither entity was ever registered with the Commission.
The scheme's defining move was to use the SEC's own public filing systems to look approved: the defendants submitted false Form ADV and Form D filings to the SEC, then pointed investors to those publicly viewable filings as supposed proof that the SEC had licensed or approved them, and displayed fake certificates bearing the SEC's seal. "This alleged scheme was well-planned, as evidenced by how many different communications channels the defendants chose to broadcast to their target audiences. From social media and encrypted messaging channels to weekly live videoconferences and a mobile app, they were determined to keep investors engaged. They further sustained the ruse by displaying fake certificates with the SEC's seal and making periodic payments to certain investors - a Ponzi-like tactic - while misappropriating the remaining funds," said Laura D'Allaird, Chief of the SEC Enforcement Division's Cyber and Emerging Technologies Unit. The Form ADV filed by BG Wealth and the Form D filed by DSJ Exchange have been removed from the Commission's website.
The SEC charged both companies with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, and charged BG Wealth with violating Sections 204(a) and 207 of the Investment Advisers Act of 1940. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both defendants, and conduct-based injunctions against BG Wealth. The allegations have not been adjudicated.
The SEC's Office of Investor Education and Assistance has issued investor alerts warning that scammers are using SEC exempt reporting adviser filings to create a false impression of legitimacy and lure investors with false claims of SEC registration, and it encourages investors to use Investor.gov to check the background of anyone offering or selling them an investment. The SEC said it appreciates the assistance of the Alberta Securities Commission; the Hawaii Department of Commerce and Consumer Affairs, Securities Enforcement Branch; the Texas State Securities Board; the Utah Department of Commerce, Division of Securities; the Washington State Department of Financial Institutions; and the Wisconsin Department of Financial Institutions, among other authorities and regulators.
Source: GSM News, America
Source: GSM · USA (original Chinese edition)
Photo: 图：美国证券交易委员会（SEC）总部大楼（GSM联邦固定图库）。两名被告无官方照片。 / Image: U.S. Securities and Exchange Commission (SEC) headquarters (GSM federal fixed-image library). No official photos of the defendants are available.
