# SEC Charges Two Firms in Alleged $130 Million Crypto Fraud

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/44886
Published: 2026-10-30T16:25:34.000Z
Updated: 2026-10-30T16:25:34.000Z
Section: Regulation

> The complaint alleges the firms solicited investors across more than 40 states and several U.S. territories, using false SEC filings and certificates bearing the agency’s seal.

The SEC charged two Colorado-incorporated companies with allegedly raising more than $130 million from tens of thousands of retail investors through a crypto program promoted with false claims of regulatory approval. The named companies are BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd. The SEC’s complaint alleges the firms solicited investors from at least October 2025 through June 2026 in more than 40 states and several U.S. territories.

BG Wealth claimed it was the world’s largest hedge fund, had SEC investment-adviser registration and partnered with a licensed, secure crypto trading platform. The SEC alleges those claims were false and that the companies submitted Form ADV and Form D filings, then showed the documents to investors as evidence of government approval. Investors were promised risk-free returns from crypto trading signals, the complaint says.

The complaint also alleges the companies displayed fake certificates bearing the SEC seal and made periodic payments to some investors while misappropriating the remaining funds. The SEC brought antifraud charges against both companies under the 1933 Securities Act and the 1934 Securities Exchange Act. BG Wealth also faces charges under the Investment Advisers Act.

The agency is seeking permanent injunctions, disgorgement with prejudgment interest and civil penalties, as well as restrictions on BG Wealth’s conduct. The SEC has warned that exempt reporting adviser filings can be misused to make investment pitches appear legitimate.