SEC removes filings used in alleged 130 million dollar crypto fraud

The US Securities and Exchange Commission announced on October 29 that it removed regulatory filings used by two companies to legitimize an alleged 130 million dollar crypto investment fraud. CryptoSlate, TradingView, TokenPost, Unchained Crypto, and Coindoo all reported that the regulator charged BG Wealth Sharing and DSJ Exchange over the scheme. [1][2][3][4][5]

According to CryptoSlate and Unchained Crypto, the companies submitted false disclosures to the agency's public databases. Unchained Crypto reported that the entities subsequently presented these database records to prospective investors to appear properly registered and authorized by the federal government. [1][4]

CryptoSlate reported that the operators of the scheme promised investors monthly returns of 60 percent. The fraud resulted in more than 100 million dollars in losses for investors. [1]

The enforcement action is part of a broader regulatory crackdown on high-yield digital asset schemes. As FTMQ Crypto reported earlier, the New York Attorney General requested a 1.37 billion dollar judgment against the founders of NovaTech following an alleged cryptocurrency Ponzi scheme. [1][6]

According to CryptoSlate, the regulator is seeking monetary relief alongside a targeted future filing bar against the entities involved in the fraud. [1]