Crypto scammers used SEC’s website to lure investors into alleged $130 million fraud

The US Securities and Exchange Commission (SEC) has removed regulatory filings allegedly used to legitimize a $130 million crypto investment fraud.In an Oct. 29 announcement, the regulator said BG Wealth Sharing and DSJ Exchange submitted false disclosures to its public databases and subsequently presented those records to prospective investors as evidence of government authorization.The scheme allegedly raised more than $130 million from tens of thousands of investors across the United States and abroad, resulting in losses exceeding $100 million.According to the SEC, the companies operated between at least October 2025 and June 2026, promoting a cryptocurrency investment program that promised monthly returns of at least 60% and claimed investors 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.However, investigators alleged that the promised trading activity was fictitious and the companies diverted most investor deposits rather than investing them as advertised.How the f...