SEC Sues BG Wealth Sharing Over $130 Million Crypto Scheme Sold as an SEC-Registered Hedge Fund
The complaint seeks to bar BG Wealth from filing as an exempt reporting adviser after its promoters allegedly pointed investors to its public SEC record as proof of a license.
November 2, 2026
The Securities and Exchange Commission has sued BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd, alleging the two Colorado-incorporated, foreign-operated entities raised more than $130 million from tens of thousands of retail investors through a crypto trading program propped up by false SEC filings. The complaint, filed October 29 in the U.S. District Court for the Northern District of California, covers conduct from at least October 2025 through June 2026, with investors in more than 40 states and multiple U.S. territories.
According to the SEC, BG Wealth enrolled investors in a purported wealth-sharing program that promised extraordinary, risk-free returns from crypto trading signals the defendants said were generated by artificial intelligence. BG Wealth described itself as the world's largest hedge fund and an SEC-registered investment adviser, and presented DSJ Exchange as a licensed and secure trading platform. The SEC alleges none of those claims was true and that neither entity was ever registered with the agency.
Public SEC Records Used as Credentials
To back up the registration claims, the defendants made filings on the SEC's own public systems. According to the complaint, BG Wealth filed a Form ADV in August 2025 claiming exempt reporting adviser status, and DSJ Exchange filed a Form D in July 2025 announcing a purported $100 million offering of pooled investment fund interests under Rule 506(c).
Promoters then steered investors to those public records, and to fabricated registration certificates bearing the SEC's seal and the filings' CRD and CIK numbers, as evidence that the agency had licensed or approved the business. The SEC says both filings contained false information, and it has since removed BG Wealth's Form ADV and DSJ Exchange's Form D from its website.
The SEC's Office of Investor Education and Assistance has issued alerts warning that scammers are using exempt reporting adviser filings to create a false impression of legitimacy and are making false claims of SEC registration. In the complaint, the agency states that a Form ADV filed by an exempt reporting adviser and a Form D notice are not licenses and do not show that the SEC approved the filer or its investments.
Charges and Relief Sought
Both defendants are charged with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. BG Wealth also faces charges under Sections 204(a) and 207 of the Investment Advisers Act of 1940.
The SEC seeks permanent injunctions, disgorgement with prejudgment interest and civil penalties against both entities, along with conduct-based injunctions against BG Wealth that include barring it from filing Forms ADV as an exempt reporting adviser.
The investigation is being run by the Division of Enforcement's Cyber and Emerging Technologies Unit, and the San Francisco Regional Office is leading the litigation. The SEC credited assistance from the Alberta Securities Commission and securities regulators in Hawaii, Texas, Utah, Washington and Wisconsin, among others.
