SEC Halts $130M Crypto Scheme Backed by Fake Agency Filings

The US Securities and Exchange Commission (SEC) has initiated legal action against two foreign-operated, Colorado-incorporated entities for allegedly orchestrating a widespread cryptocurrency fraud scheme. According to the federal regulator, the operation successfully raised more than $130 million, duping tens of thousands of retail investors situated across more than 40 individual states and multiple US territories.

The corporate defendants formally named in the federal action are BG Wealth Sharing Ltd (BG Wealth) and DSJ Exchange Pty Ltd (DSJ Exchange). The overarching scheme allegedly operated over a timeframe stretching from at least October 2025 through June 2026. However, the bulk of the financial activity was highly concentrated in a tighter window. The entities received over $130 million in deposits strictly between March and mid-June of 2026, drawing capital from more than 223,000 distinct blockchain addresses.

Super Intelligence Claims

The purported investment initiative was aggressively marketed as a "wealth-sharing program." Retail investors were enticed with promises of generating monthly returns of at least 60%. The defendants claimed these extraordinary yields were made possible by exclusive "SI-generated" (Super Intelligence) signals applied directly to crypto asset trading.

To manufacture a false appearance of regulatory compliance and approval, the organizations allegedly submitted fabricated Form ADV and Form D filings directly to the SEC. This deception was heavily supported by a robust marketing and engagement framework across multiple digital platforms.

"This alleged scheme was well-planned, as evidenced by how many different communications channels the defendants chose to broadcast to their target audiences," stated Laura D'Allaird, Chief of the SEC Enforcement Division's Cyber and Emerging Technologies Unit. "From social media and encrypted messaging channels to weekly live videoconferences and a mobile app, they were determined to keep investors engaged. They further sustained the ruse by displaying fake certificates with the SEC's seal and making periodic payments to certain investors - a Ponzi-like tactic - while misappropriating the remaining funds."

Federal Charges

The SEC formalized its allegations by filing a complaint on October 29, 2026, in the United States District Court for the Northern District of California.

Both BG Wealth and DSJ Exchange have been formally charged with violating the core antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. In addition to these primary charges, BG Wealth faces secondary allegations of violating Sections 204(a) and 207 of the Investment Advisers Act of 1940.

At this stage, the federal allegations have not yet been tested or proven in a court of law. The involved firms have not responded to press requests for comment regarding the federal lawsuit.