SEC charges BG Wealth and DSJ Exchange over alleged crypto fraud exceeding $130 million

What changed

The SEC sued BG Wealth Sharing Ltd and DSJ Exchange PTY Ltd on October 29, 2026, alleging crypto fraud exceeding $130 million. According to its complaint, the defendants fabricated trading profits and misappropriated investors’ crypto deposits. The SEC alleges that they used false Form ADV and Form D filings to claim SEC licensing or approval. The SEC seeks injunctions, disgorgement with prejudgment interest, and civil penalties. The SEC announced that it removed the filings from its website.

Who it affects

• Clients who deposited crypto assets with BG Wealth or DSJ Exchange could face losses.
• Advisors evaluating purported crypto managers face false registration claims.

What is still open

• The court has yet to determine liability or remedies.
• The SEC has not established how much investors will recover.

What it means for an advisor

• Check client exposure to BG Wealth and DSJ Exchange.
• Verify registration status separately from the existence of a Form ADV or Form D.
• Preserve client communications and crypto transfer details when assessing potential losses.