The Securities and Exchange Commission charged BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd on October 29, 2026, with conducting an alleged investment fraud. The SEC alleges that the program attracted more than $130 million from tens of thousands of retail investors. Both defendants were incorporated in Colorado and operated from abroad.
According to the complaint, the defendants recruited investors into a purported wealth-sharing program from at least October 2025 through June 2026. The complaint alleges that many investors were in more than 40 U.S. states and multiple U.S. territories. The defendants allegedly promised exceptional returns without risk from crypto asset trading based on so-called SI-generated signals.
The complaint alleges that BG Wealth falsely described BG Wealth as the largest hedge fund worldwide and as an SEC-registered investment adviser. BG Wealth also allegedly claimed a partnership with DSJ Exchange, which BG Wealth presented as a licensed, secure crypto trading platform. According to the complaint, neither defendant held SEC registration.
The complaint alleges that the defendants filed false Forms ADV and D with the SEC to make the businesses appear legitimate. The filings were accessible to the public and were circulated to investors as purported evidence of SEC licensing or approval, according to the complaint. The SEC alleges that the filings included false information. BG Wealth's Form ADV and DSJ Exchange's Form D have separately been taken off the SEC website.
The SEC filed the complaint in the United States District Court for the Northern District of California. The complaint charges both defendants under the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The complaint also charges BG Wealth under 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. The SEC also seeks conduct-based injunctions against BG Wealth.
The SEC's Office of Investor Education and Assistance has issued alerts about scammers misusing exempt reporting adviser filings to appear legitimate. The alerts warn that scammers falsely claim SEC registration to attract investors. The SEC urges investors to check the backgrounds of people offering or selling investments through the SEC's investor-information website. The SEC's investigation remains ongoing.
SEC Charges BG Wealth Sharing and DSJ Exchange with $130M Crypto Investment Fraud
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Summary
The U.S. Securities and Exchange Commission (SEC) filed a complaint on October 29, 2026, against BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd for alleged investment fraud. The SEC alleges the companies collected over $130 million from tens of thousands of retail investors by falsely claiming BG Wealth was the world’s largest hedge fund and an SEC-registered adviser. The complaint shows neither company was registered with the SEC and that they submitted false Forms ADV and D to appear legitimate. The SEC seeks injunctions, disgorgement, and civil penalties. The case highlights unusual exchange flows linked to unregistered platforms. Retail investors may want to monitor the fear and greed index for signs of market sentiment shifts.
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