The Securities and Exchange Commission has taken legal action against a pair of foreign-run, Colorado-registered entities over a digital asset investment scam that leveraged bogus federal documentation to secure upwards of $130 million from countless everyday buyers.
The accused parties are DSJ Exchange Pty Ltd. and BG Wealth Sharing Ltd. Documentation submitted to the U.S. District Court for the Northern District of California asserts that starting at least in October 2025 and lasting through June 2026, the organizations persuaded buyers across more than 40 states and multiple American territories to participate in a designated “wealth-sharing program.”
Contributors were guaranteed zero-risk profits supposedly produced via specialized cryptocurrency trading indicators.
Based on the complaint, BG Wealth asserted itself to be the premier global hedge fund, stated it was officially registered as an investment advisor with the SEC, and maintained it collaborated with a secure, authorized digital asset trading platform named DSJ Exchange.
The commission asserts that every single one of those assertions was false. The lawsuit maintains that the enterprises submitted fraudulent Form D and Form ADV submissions to the regulator. Those documents were accessible on the commission’s portal and presented to backers as proof that the regulatory body had sanctioned or authorized the businesses.
Laura D’Allaird, head of the Cyber and Emerging Technologies Unit within the SEC Enforcement Division, outlined the scheme in an official comment.
SEC: Crypto scheme was ‘a Ponzi-like tactic’
“This alleged scheme was well-planned,” she noted, pointing to social media platforms, secure chat platforms, routine live video meetings, and a proprietary mobile application deployed to interact with contributors. The lawsuit contends that the accused entities showcased counterfeit credentials featuring the regulator’s emblem and distributed regular distributions to select participants, which is characterized as “a Ponzi-like tactic,” while redirecting the rest of the capital.
The regulator prosecuted both organizations for breaking the anti-deception rules outlined in the Securities Exchange Act of 1934 and the Securities Act of 1933.
It also accused BG Wealth of breaching Sections 207 and 204(a) of the Investment Advisers Act of 1940. The authority is pursuing permanent restraining orders, the return of ill-gotten gains plus interest before judgment, and financial penalties against both entities, alongside behavior-focused restrictions directed at BG Wealth.
The fraudulent Form ADV and Form D paperwork has since been taken down from the regulator’s domain.
The Office of Investor Education and Assistance under the SEC has published advisory warnings alerting the public that fraudsters are utilizing exempt reporting adviser documentation to manufacture an illusion of authenticity. The agency advises individuals to verify the credentials of any entity pitching or vending a digital asset venture by visiting Investor.gov.
The commission mentioned it obtained support from the Alberta Securities Commission, the Hawaii Department of Commerce and Consumer Affairs, the Texas State Securities Board, the Utah Division of Securities, the Washington State Department of Financial Institutions, the Wisconsin Department of Financial Institutions, alongside additional regulatory bodies.
Originally published at https://bitcoinmagazine.com/news/sec-charges-companies-130-million-crypto.
