SEC charges two entities in $130 million scheme that used false SEC filings to lure investors

📅 29 October 2026 • SEC

SEC charges two entities in $130 million scheme that used false SEC filings to lure investors

The Securities and Exchange Commission charged two foreign-operated, Colorado-incorporated entities, BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd, over a scheme that raised more than $130 million from tens of thousands of retail investors. According to the complaint, the conduct ran from at least October 2025 through June 2026 and reached investors in more than 40 US states and multiple US territories.

The SEC filed the complaint on 29 October 2026. These are allegations in a complaint, and no court has determined liability.

How public filings were used

The complaint alleges the defendants submitted a false Form ADV and a false Form D to the SEC, then directed investors to those publicly viewable filings as supposed proof that the SEC had licensed or approved them. Fake certificates bearing the SEC's seal were displayed on the website and in weekly video appearances.

BG Wealth claimed to be the world's largest hedge fund and a registered investment adviser, and DSJ Exchange was presented as a licensed crypto platform. The SEC states that neither entity was ever registered with it, and both filings have since been removed from the Commission's website.

What the complaint alleges

Investors were invited into a supposed wealth-sharing program promising extraordinary, risk-free returns from so-called SI-generated crypto signals. The complaint alleges fabricated account balances, periodic payments to some investors described as a Ponzi-like tactic, and misappropriation of the remaining funds, broadcast across social media, encrypted messaging, live videoconferences and a mobile app.

It charges violations of the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, plus sections 204(a) and 207 of the Investment Advisers Act of 1940 against BG Wealth. The case is pending in the US District Court for the Northern District of California, and the SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties and conduct-based injunctions.

The SEC's Office of Investor Education and Assistance has issued investor alerts warning that scammers use exempt reporting adviser filings to create a false impression of legitimacy, and it directs investors to check the background of any offer on Investor.gov.

IMPACT

Who is affected: registered and exempt reporting advisers, crypto platforms, promoters and intermediaries whose onboarding packs cite regulatory registration. Process changes: verify Form ADV and Form D records against IAPD and EDGAR before onboarding a counterparty.

Timelines: the filings are already withdrawn, and the enforcement action runs through the courts, so scrutiny of exempt reporting filings should be treated as ongoing. Risks of non-compliance: the relief sought here includes permanent injunctions, disgorgement with prejudgment interest and civil penalties.

Sources: SEC.gov, ABA Banking Journal, Securities.io

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