The US Securities and Exchange Commission has charged BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd over an alleged cryptocurrency investment fraud that raised more than $130 million from tens of thousands of investors. In a complaint filed October 29, 2026, regulators accuse the companies of using false SEC filings and fabricated trading profits to encourage deposits into an investment program that promised unusually high, risk-free returns.
The allegations appear in the SEC’s October 29 announcement and a litigation update dated October 30. The complaint was filed in the US District Court for the Northern District of California as case 3:26-cv-12746. The defendants have been charged in a civil enforcement case; these allegations have not been established by a final court judgment.
How the SEC says the scheme operated
According to the SEC complaint, BG Wealth and DSJ Exchange claimed investors could profit from trading signals purportedly generated by an automated system. BG Wealth allegedly described itself as the world’s largest hedge fund and suggested it was properly registered as an investment adviser, while DSJ Exchange was marketed as a secure, licensed crypto trading platform.
Regulators say those representations were false. The complaint alleges neither entity was registered with the SEC and that the defendants filed misleading Form ADV and Form D documents, which were publicly viewable and shown to prospective investors as supposed evidence of regulatory approval. SEC filings, even when genuine, do not automatically constitute an SEC endorsement of an investment.
223,000 blockchain addresses and more than $100 million in alleged losses
The SEC says the operation received more than $130 million from over 223,000 blockchain addresses between March and early June 2026 alone. A blockchain-address count is not necessarily a count of unique people, because one investor may control multiple addresses. The agency estimates investor losses exceeding $100 million and alleges that no more than $25 million was returned in payments resembling a Ponzi scheme.
The complaint says the defendants used social platforms, encrypted chat groups, weekly video conferences and events in major US cities to recruit investors. A multi-level marketing structure allegedly offered additional signals and commissions for bringing new participants into the program.
Withdrawals, alleged false hack explanation and migration demands
According to the filing, the companies discouraged withdrawals through delays and fees as high as 20%. After authorities seized a BG Wealth website in April 2026, the company allegedly blamed a ‘Chinese hack’ to explain the disruption. The complaint says DSJ Exchange later blocked withdrawals and sought additional ‘tax’ payments from people attempting to retrieve their money. Investors were also instructed to move assets to another purported platform, HQI Exchange.
These details are allegations by the regulator and do not independently prove the defendants’ intent. They are important because they illustrate common features of suspected investment fraud: unverifiable high returns, fabricated account balances, escalating withdrawal barriers and demands for fresh payments before funds can be released.
What happens next?
The SEC seeks injunctions, financial remedies including disgorgement and interest, and civil penalties. Its investigation and civil litigation remain ongoing. The agency said the disputed Form ADV and Form D filings have been removed from its website.
Investors can use Investor.gov to investigate regulatory registrations and disciplinary histories, but should remember that a real filing does not establish the reliability of returns or the safety of an investment. BlockBriefing has covered related crypto risks in its guide to identifying warning signs in crypto projects.
Source and verification: SEC press release, litigation release and federal civil complaint. This article reports regulatory allegations, not proven criminal wrongdoing.
