SEC Sues Two Entities, Including BG Wealth, in $130 Million Crypto Fraud

TechFlow news, October 30, according to The Defiant, the U.S. SEC has sued two entities registered in Colorado and operated by overseas personnel, BG Wealth Sharing and DSJ Exchange, alleging they orchestrated a crypto investment fraud, raising more than $130 million from tens of thousands of retail investors, with investor losses exceeding $100 million.

According to the complaint, between October 2025 and June 2026, the two companies promised risk-free high returns through so-called crypto trading “signals” and submitted false Form ADV and Form D filings to the SEC, falsely claiming regulatory authorization to investors, while making periodic payments to some investors to sustain the scheme, exhibiting Ponzi characteristics.

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

Source: TechFlow