SEC says a crypto "signals" scheme used real SEC filings to look approved. How BG Wealth allegedly raised $130 million

The SEC has sued two companies it says ran a crypto trading "signals" program that drew in over $130 million from a huge number of everyday investors. What made it look believable, according to the agency, was real paperwork sitting on SEC websites, passed off to investors as proof of an SEC license. These are allegations, and no court has ruled on them yet.

What the SEC says happened

On Thursday, October 29, 2026, the SEC filed a civil complaint in federal court in Northern California against two companies: BG Wealth Sharing Ltd, plus DSJ Exchange Pty Ltd. Both companies are incorporated in Colorado, but the SEC calls them foreign-operated, and its complaint says the scheme was run by people located abroad. According to the SEC:

• The pitch: from at least October 2025 to June 2026, people in more than 40 US states and several US territories were drawn into a so-called "wealth-sharing program." BG Wealth told people they'd earn 60% or more every month and could double their money within 40 days, and described the program as "zero risk." The engine was supposedly a set of crypto trading signals that BG Wealth claimed were 99.6% accurate.
• The claims: BG Wealth described itself as the biggest hedge fund in the world and claimed to hold an SEC license as an investment adviser, and that DSJ Exchange was a licensed, secure trading platform. The SEC says none of that was true.
• The money: from March to early or mid-June 2026 alone (the complaint uses both), the SEC says the program took in upward of $130 million, sent from over 223,000 blockchain addresses. The SEC alleges most of it was misappropriated, that at most $25 million was paid back out to wallets that probably belonged to investors, as Ponzi-like payments, which use new money to pay earlier investors, and that investor losses exceed $100 million.
• The ending: withdrawals carried fees as high as 20% and delays of several days, the SEC says, until DSJ Exchange blocked them altogether. Investors were then asked for extra "tax" payments and told to put in even more to transfer to a replacement platform called HQIEX. The complaint says those who paid still couldn't get their money out.

The SEC charges both companies with violating the antifraud provisions of federal securities law, and it separately accuses BG Wealth of breaking the Investment Advisers Act. It is asking the court for permanent injunctions, disgorgement plus interest and civil penalties, and wants BG Wealth blocked from submitting any more ERA filings. The SEC thanked the Alberta Securities Commission and securities regulators in Hawaii, Texas, Utah, Washington and Wisconsin, among others, for their help. Unchained and InvestmentNews also reported on the complaint.

The trick: real filings, fake meaning

This is the part worth remembering, because the same move is used in other schemes. According to the complaint, BG Wealth submitted a Form ADV that described it as an exempt reporting adviser, while DSJ Exchange's Form D notice advertised a supposed $100 million exempt offering. Those filings were real and anyone could look them up. Investors were pointed to them, and to fake "registration certificates" stamped with the agency's seal, as evidence that the companies were licensed or signed off by the SEC.

Neither filing means that. Investor.gov, the SEC's investor education site, says:

• An exempt reporting adviser (ERA) is not registered with the SEC. It may advise only private funds, and it can't legally give investment advice directly to you.
• Filing a Form D doesn't make anyone SEC-registered or licensed; it simply isn't that kind of document.
• The SEC doesn't issue registration certificates at all. Any "SEC certificate" is fake.

The SEC also says the filings themselves were false. For example, BG Wealth's Form ADV gave a PostNet virtual mailbox as its main office. The SEC has now removed both filings from its website. The complaint adds that on September 29, 2026, DSJ Exchange switched its EDGAR name to Horizon Crest Capital Inc. and filed a new Form D, which the SEC calls an apparent attempt to keep the fraud going. If someone pitches you either name, that's a red flag.

The red flags in this case

• Guaranteed returns. "At least 60%" a month with "zero risk" isn't how any real investment works. Washington's Department of Financial Institutions (DFI), which warned about BG Wealth in April, says no investment is guaranteed. The complaint says that at least seven securities regulators outside the US, and authorities in seven US states including Washington, had issued warnings or cease-and-desist orders, and the program kept going anyway.
• Near-perfect AI or signals. A 99.6% accuracy claim is a sales line, not evidence.
• Paying to get your own money out. Washington DFI says a company that makes you deposit more to withdraw is highly likely to be running an advance-fee scam.
• A "hack" story and a new platform. After the FBI seized BG Wealth's original website domain on April 23, 2026, the complaint says, the program's purported founder blamed a Chinese hacker and urged investors to stay calm.
• Rewards for recruiting. The SEC says investors unlocked extra signals, bonuses and commissions by bringing in new people through a multi-level marketing structure. When the rewards come mainly from recruiting, treat it as a warning sign.
• Private chat apps. Washington DFI says BG Wealth talked to investors through Telegram and an app called Bonchat, and that legitimate investment firms generally don't use channels like those, WhatsApp or Signal to deal with investors.

What this means for you

• Look the firm up yourself. Use the free "Check Out Your Investment Professional" search on Investor.gov, typed into your browser, not a link someone sends. If a firm only shows up as an ERA, it is not SEC-registered. A Form D on the SEC's EDGAR database isn't a registration or a license either.
• Treat an "SEC certificate" as a warning sign. The SEC doesn't issue them.
• Never pay to withdraw. Taxes, fees or "verification" deposits to unlock your balance are how these schemes take a second bite.
• Beware of rescuers. Washington DFI warns that crypto scam victims are often targeted next by people offering to recover their money for a fee. Read our guide to recovery scams.
• Report it. The SEC takes tips and complaints on its website, and the FBI's Internet Crime Complaint Center takes reports at ic3.gov.

Not sure about an offer? Paste it into our free Scam Check, and see how similar schemes work in our guide to pig-butchering scams.

The takeaway

The SEC alleges that BG Wealth and DSJ Exchange used promises of huge, risk-free returns plus real but meaningless SEC filings to raise more than $130 million, and that investors lost over $100 million. As of October 31, 2026, the public court docket (case No. 3:26-cv-12746) showed no response from the companies, and nothing has been proven. The lesson stands either way: a filing is not a license, the SEC never issues certificates, and you should check any investment professional on Investor.gov yourself before sending a dollar of crypto. This is education, not financial advice, and it reflects the SEC's complaint and press release as of October 31, 2026.

Published October 31, 2026 by Dave McNaught. Educational content, not financial, legal or tax advice. Spot an error? Request a correction.

About the author

Dave McNaught

Dave McNaught has worked in IT since 1999 and founded All Business Technologies (ABT) in 2003, a Boston-area firm providing Managed IT, Cybersecurity, Managed AI, Web Design and App Development. He publishes The Crypto Guide.

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