SEC Sues BG Wealth and Two Other Entities Over $130 Million Crypto Fraud

On October 30, according to The Defiant, the U.S. SEC sued two Colorado-registered entities operated by foreign nationals, BG Wealth Sharing and DSJ Exchange, alleging they orchestrated a cryptocurrency investment fraud scheme that raised over $130 million from tens of thousands of retail investors, causing investor losses exceeding $100 million.

According to the complaint, between October 2025 and June 2026, the two companies promised risk-free high returns under the guise of so-called crypto trading “signals,” filed false Form ADV and Form D documents with the SEC to falsely claim regulatory approval to investors, and made periodic payments to certain investors to sustain the scam, exhibiting characteristics of a Ponzi scheme.

The case was filed in the U.S. District Court for the Northern District of California, and the SEC is seeking a permanent injunction, disgorgement of ill-gotten gains, and civil penalties. Related filings have been removed from the SEC’s website.