SEC Charges Two Firms in Alleged $130 Million Crypto Fraud

The SEC seeks an order barring BG Wealth Sharing Ltd and related parties from filing Form ADV as exempt reporting advisers over an alleged crypto program that received more than $130 million.

The SEC brought its civil case Oct. 29 in federal court in Northern California, naming BG Wealth and DSJ Exchange Pty Ltd. The complaint says BG Wealth submitted an adviser filing under exempt-reporting status, while DSJ Exchange filed a Form D for a purported $100 million exempt securities offering. The firms allegedly used those public records to suggest SEC approval. Neither company was registered with the agency, which removed both filings from its public websites.

An exempt reporting adviser’s Form ADV submission does not make it SEC-registered. A Form D likewise does not amount to registration, licensing or approval by the agency.

The SEC alleges the program received more than $130 million from over 223,000 blockchain addresses between March and June 2026. The complaint says the firms solicited people in more than 40 states, U.S. territories and abroad, touting monthly returns of at least 60% and saying principal could double within 40 days. The address total is not a count of unique investors.

The SEC alleges no more than $25 million went back to wallets it believed were linked to investors through Ponzi-like payments, while the remaining assets were misappropriated. The complaint does not give a precise net-loss figure.

The agency seeks permanent injunctions, disgorgement with prejudgment interest and civil penalties. It also asks the court to bar BG Wealth and specified related parties from filing Form ADV as exempt reporting advisers. Those remedies remain requests, and the complaint is not a court finding of liability.