The Securities and Exchange Commission (SEC) has filed a California lawsuit alleging that BG Wealth Sharing Ltd and DSJ Exchange PTY Ltd promised potential investors a “risk-free” crypto trading opportunity.
According to the filing, BG Wealth claimed to be “the world’s largest hedge fund” and an “SEC-licensed investment adviser.”
The pitch offered investors a guaranteed 60% monthly return.
The group claimed to have developed an artificial intelligence-powered service that supported trading with zero risk.
DSJ Exchange claimed to be a licensed and secure crypto exchange.
The group promoted the offering on social media like YouTube, TikTok, Facebook, Instagram, and Telegram.
US-based promoters also orchestrated in-person road shows.
All of this was buttressed by a Form D filed on EDGAR, the SEC’s filing database, that announced a purported $100 million exempt securities offering. The defendants pointed to these filings to gain investor confidence while apparently fabricating documents that the SEC had approved them.
Form D is a notice filing and is not qualified or approved by the SEC.
The SEC describes the alleged scam as “extraordinarily successful,” collecting over $130 million from March 2026 to June 2026. As the fraud unraveled, perpetrators blamed a Chinese hack while demanding investors pay an additional tax to withdraw their funds. Even after the FBI seized the BG Wealth website in April 2026, the operation continued.
Losses were placed at over $100 million.
Related individuals include “Professor” Stephen Beard, who presented himself to investors as BG Wealth’s founder and CEO. The SEC says it believes Beard is using a false identity. His location and true identity remain unknown.
Notably, beginning in May 2025, foreign securities regulators reportedly raised an alarm about the ploy. In March 2026, several states issued cease-and-desist orders.
Despite the warnings, the plot continued operating until June, with investors committing funds
Reports indicate the scam originated in Southeast Asia, with complicit actors based in the US.
Federal authorities are pursuing criminal charges. The Department of Justice case unsealed in April 2026 revealed that many of the scam centers operating in Southeast Asia are manned by human trafficking victims.
