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SEC Press Releases·

Two Entities Charged in $130 Million Fraud Scheme That Used False SEC Filings to Boost Investor Confidence

  • The SEC charged Colorado-incorporated entities BG Wealth Sharing Ltd & DSJ Exchange Pty Ltd with orchestrating a fraud scheme that raised over $130 million from tens of thousands of retail investors.
  • From October 2025 through June 2026, the defendants induced investors across 40+ U.S. states & territories to join a fake "wealth-sharing program" by promising risk-free returns from crypto trading signals.
  • The scheme involved false claims that BG Wealth was the world's largest SEC-registered hedge fund & partnered with a legitimate platform, despite none of these assertions being true.
  • Defendants submitted fraudulent Form ADV & Form D filings to the SEC to create a false appearance of regulatory approval & shared fake SEC seal certificates with victims.
  • The fraud utilized social media, encrypted messaging, live videoconferences, & a mobile app to engage investors while employing Ponzi-like tactics of paying early investors with funds misappropriated from others.
  • The complaint filed in the Northern District of California charges violations of the Securities Act of 1933, Securities Exchange Act of 1934, & the Investment Advisers Act of 1940.
  • The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, & conduct-based injunctions against the defendants.
  • The SEC issued investor alerts warning that scammers exploit exempt reporting adviser filings to mimic legitimacy & urged the public to verify investment backgrounds via Investor.gov.
  • The false Form ADV & Form D filings associated with the scheme have been removed from the SEC website.
  • The investigation involved assistance from multiple U.S. state regulators & the Alberta Securities Commission.