SEC Charges Firms in $130 Million Crypto Investment Fraud

The U.S. Securities and Exchange Commission has charged two companies with orchestrating a $130 million crypto investment fraud that used falsified regulatory filings to lure tens of thousands of retail investors.

According to a complaint filed in California federal court, BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd. operated a “wealth-sharing program” from at least October 2025 through June 2026. The scheme promised investors risk-free returns from crypto trading signals.

The SEC alleges the companies falsely claimed BG Wealth was the world’s largest hedge fund, was registered with the SEC as an investment adviser, and partnered with a licensed crypto platform. To bolster these claims, they submitted fake Form ADV and Form D filings to the SEC, which were then shared with investors as purported proof of legitimacy.

Laura D’Allaird, chief of the SEC’s Cyber and Emerging Technologies Unit, stated the operation used social media, encrypted messaging, and a mobile app to engage investors, paying some with new investor funds in a “Ponzi-like tactic” while misappropriating the rest. The SEC seeks permanent injunctions, disgorgement, and civil penalties against both firms.