SEC charges two entities in a multi-million dollar fraud scheme
Image: Bitcoin MagazineThe Securities and Exchange Commission charged BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd with running a fraudulent investment program. The companies raised millions of dollars from tens of thousands of retail investors by promising risk-free returns from crypto trading. The defendants used false SEC filings to make their operations appear legitimate. The SEC filed a complaint in the United States District Court for the Northern District of California.
Key points
- The SEC charged BG Wealth Sharing Ltd and DSJ Exchange Pty Ltd with running an investment fraud scheme.
- The defendants raised funds from tens of thousands of retail investors by promising risk-free crypto trading returns.
- The companies submitted false Form ADV and Form D filings to the SEC to appear legitimate.
- The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both defendants.
Why it matters
Regulators are actively cracking down on fraudulent entities that misuse federal filings to deceive retail crypto investors.
Sources · 3 publishers
Two Entities Charged in $130 Million Fraud Scheme That Used False SEC Filings to Boost Investor Confidence
The Defiant
Tier 1
SEC Charges BG Wealth and DSJ Exchange in Alleged $130 Million Crypto Fraud
Bitcoin Magazine
Tier 1
SEC Charges Two Companies in $130 Million Crypto Trading Scheme
Coverage timeline
- First reported by US SEC
- Also reported by The Defiant
- CryptoVideos brief published
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