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SEC Says $130 Million Crypto Scheme Used the Agency’s Own Databases to Look Registered
The SEC says the firms used fake registration certificates and blocked withdrawals while taking in more than $130 million from 223,000 blockchain addresses.
- On Thursday, the Securities and Exchange Commission charged Colorado-incorporated companies BG Wealth Sharing and DSJ Exchange with operating a fraudulent crypto scheme that collected more than $130 million from over 223,000 blockchain addresses.
- To convince investors of legitimacy, the companies used legitimate SEC filings like Form ADV and Form D alongside fake registration certificates bearing the SEC's seal, falsely claiming government approval.
- The scheme resulted in losses exceeding $100 million for investors, with less than $25 million returned as payments; the firms blocked withdrawals and demanded an additional "tax" to unlock accounts.
- Following the FBI seizure of a domain, BG Wealth founder Stephen Beard blamed a Chinese hacker, while the companies directed victims to migrate funds to a platform called HQI Exchange.
- At least seven foreign regulators and seven U.S. states have issued warnings against the scheme, and the SEC now seeks civil penalties and an order barring the firms from filing further exempt reporting adviser forms.
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SEC Says $130 Million Crypto Scheme Used the Agency’s Own Databases to Look Registered
The Securities and Exchange Commission charged two Colorado-incorporated companies on Thursday, alleging they used filings sitting in the agency’s own public databases, plus fake registration certificates stamped with its seal, to convince tens of thousands of retail investors that a crypto trading program had government approval. In a complaint filed in federal court in Northern California, the agency alleges that BG Wealth Sharing and DSJ Exch…
Crypto scammers used SEC's website to lure investors into alleged $130 million fraud
The SEC’s complaint seeks a targeted future filing bar, alongside monetary relief for alleged fraud. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
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Bias Distribution
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50% Center
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