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SEC alleges two entities used false filings to support a scheme raising more than $130 million

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The SEC announced charges October 29 against BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd, alleging a scheme that raised more than $130 million from tens of thousands of retail investors. The agency says false public filings were presented as proof of SEC approval. It seeks injunctions and monetary relief; the announcement does not report a court judgment deciding the allegations.

investor-protectionsecuritiesfraud-allegationscrypto-assetssec
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The SEC alleges that BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd used false public filings to persuade investors that their investment program had regulatory approval. Its October 29 announcement says the alleged scheme raised more than $130 million from tens of thousands of retail investors.

What the SEC alleges

The agency describes the defendants as foreign-operated entities incorporated in Colorado. According to its account of the complaint, they induced investors to join a supposed wealth-sharing program from at least October 2025 through June 2026, promising extraordinary, risk-free returns from crypto-asset trading signals.

Many investors were in more than 40 U.S. states and multiple U.S. territories, the SEC says. It alleges that BG Wealth claimed to be the world's largest hedge fund, registered with the SEC as an investment adviser, and partnered with a licensed and secure trading platform.

The agency says the defendants submitted false Form ADV and Form D filings, then shared those publicly viewable filings as supposed proof that the SEC had licensed or approved them. Those representations are allegations in the agency's account, not findings independently established here.

What the lawsuit seeks

The SEC says its complaint was filed in the U.S. District Court for the Northern District of California. Both entities face alleged violations of federal securities antifraud provisions; BG Wealth also faces alleged violations of Investment Advisers Act provisions.

The requested relief includes permanent injunctions, return of gains with prejudgment interest, and civil penalties against both entities, plus conduct-based injunctions against BG Wealth. The announcement reports requested remedies, not an award, a refund program or a judgment resolving liability.

Filings and investor checks

The SEC says it has removed BG Wealth's Form ADV and DSJ Exchange's Form D from its website. It also points to investor alerts about filings being used to create a false appearance of legitimacy.

The agency encourages investors to use Investor.gov to check the background of anyone offering or selling an investment. The announcement does not establish that any particular investor has recovered money.

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