Crypto Scammers Used SEC Public Filings in Alleged $130 Million Fraud
Regulatory authorities have removed false disclosures used by fraudulent operators to lure investors into a multi-million-dollar crypto scheme.
Crypto Scammers Used SEC Public Filings in Alleged $130 Million Fraud
Regulatory authorities have removed false disclosures used by fraudulent operators to lure investors into a multi-million-dollar crypto scheme.
Fraudsters Exploited Government Databases for Crypto Investment Fraud
The United States Securities and Exchange Commission has removed regulatory filings that were allegedly used to legitimize a massive crypto investment fraud. In a recent announcement, the regulator stated that BG Wealth Sharing and DSJ Exchange submitted false disclosures to public databases and subsequently presented those government records to prospective investors as evidence of official authorization.
The illicit scheme allegedly raised more than $130 million from tens of thousands of retail investors across the United States and abroad. According to the regulatory complaint, the operation resulted in total investor losses exceeding $100 million between October 2025 and June 2026.
False Claims and Fabricated Credentials
The companies promoted a cryptocurrency investment program that promised monthly returns of at least 60% alongside claims that participants could double their money within 40 days without risk. BG Wealth portrayed itself as the world's largest hedge fund and an SEC-licensed investment adviser, while DSJ Exchange claimed to run a secure cryptocurrency trading platform that executed profitable trades.
Investigators alleged that the promised trading activity was entirely fictitious and that the operators diverted most investor deposits rather than deploying them as advertised. To reinforce their claims, the defendants reportedly displayed fabricated registration certificates bearing the SEC's official seal and identifiers associated with their filings.
Legal Action and Removal of Public Filings
The fraudulent operation relied heavily on the credibility of the SEC's public disclosure infrastructure, which allows investors to research financial businesses. BG Wealth submitted a Form ADV claiming exempt reporting adviser status, while DSJ Exchange filed a Form D announcing a purported $100 million securities offering.
The SEC has now removed both filings from its public websites and filed a civil lawsuit in the Northern District of California. The regulatory agency is seeking permanent injunctions, financial penalties, and the repayment of allegedly unlawful gains with interest.
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