SEC Takes Action against two companies accused of using false filings to make a $130 million crypto investment program appear legitimate. In an October 29 announcement, the regulator said BG Wealth Sharing and DSJ Exchange submitted disclosures that promoters presented as proof of government authorization.
The SEC said the alleged operation collected more than $130 million from tens of thousands of investors in the United States and abroad. The agency’s civil complaint says the companies operated from at least October 2025 through June 2026, while investigators traced collections from more than 223,000 blockchain addresses between March and early June 2026.
SEC Takes Action Over Filings Presented as Approval
According to the SEC, BG Wealth filed Form ADV to claim status as an exempt reporting adviser. DSJ Exchange allegedly submitted Form D for a purported $100 million securities offering. The filings appeared in the SEC’s Investment Adviser Public Disclosure system and EDGAR database, where promoters could point investors to government-hosted records.
The complaint alleges that neither company held SEC registration or a license, and that the forms did not grant regulatory approval. The SEC said the companies also used fabricated registration certificates displaying the agency’s seal and identifiers associated with the filings. The source account describes the filings as being used to give the program an appearance of legitimacy.
BG Wealth allegedly described itself as the world’s largest hedge fund and claimed it was an SEC-licensed investment adviser. It also claimed that proprietary trading technology produced signals with 99.6% accuracy. DSJ Exchange, meanwhile, claimed a secure trading platform made profitable trades, but investigators alleged its transactions, profits and account increases were fictitious.
Promised Returns and Investor Withdrawals
The SEC said the program promised monthly returns of at least 60% and told investors they could double their money within 40 days without risk. Investigators alleged that the trading was fictitious and that the companies diverted most deposits instead of investing them as promised.
The SEC alleges that Ponzi-like payments returned no more than $25 million to addresses likely controlled by investors. The agency says most of the remaining money was misappropriated. The source reports alleged investor losses exceeding $100 million, with recovery unresolved.
Promoters allegedly recruited participants through social media, encrypted messaging services, weekly video conferences and incentives for recruitment. The companies allegedly charged fees of up to 20% when investors sought withdrawals, then delayed withdrawals and ultimately blocked access to funds. Defendants later requested additional payments for taxes and urged investors to move assets to HQI Exchange, another platform. Withdrawal access remained unavailable, according to the source.
The case adds to other reported allegations involving crypto investment schemes, including the Goliath Ventures case and investor claims over account handling. A separate report described losses tied to Key Coin Assets.
SEC Seeks Court Relief
The SEC removed BG Wealth’s Form ADV and DSJ Exchange’s Form D from its public websites and filed a civil action against both companies in the Northern District of California. The lawsuit seeks permanent injunctions, financial penalties and repayment of allegedly unlawful gains with interest.
The agency also asked the court to bar BG Wealth from filing Form ADV as an exempt reporting adviser in the future. These are requests in the SEC’s complaint; the source does not report a court ruling or investor recovery. The case’s next step therefore rests with the court’s consideration of the requested relief.
