The U.S. Securities and Exchange (SEC) has filed a lawsuit against BG Wealth Sharing and DSJ Exchange, accusing them of orchestrating a cryptocurrency investment fraud that raised over $130 million from tens of thousands of retail investors, resulting in losses exceeding $100 million. Between October 2025 and June 2026, the two companies promised risk-free, high returns using cryptocurrency trading signals and filed false Form ADV and Form D filings to falsely claim regulatory approval. They also made regular payments to some investors to sustain the scam. The case has been filed in the Northern District of California federal court, with the SEC seeking a permanent injunction, recovery of illicit gains, and civil penalties.
