The Texas State Securities Board issued an emergency cease and desist order on June 3 against BG Wealth Sharing LTD, DSJ Exchange PTY Ltd, BG Wealth Sharing Group LLC, Thaddious Thomas, and Gagandeep Sarkaria for allegedly operating a crypto investment and multilevel marketing scheme targeting Texas investors. Regulators stated that recruiters allegedly promised investors they could become millionaires within months through aggressive referral incentives, citing claims of 60% monthly returns, principal protection, and a 99.6% trading success rate. The order addresses a scheme that combined purported crypto exchange operations with recruitment-based rewards and withdrawal restrictions. Texas joins Washington and Hawaii in taking formal state securities action involving BG Wealth Sharing or affiliated entities, while Utah and Alaska issued investor warnings tied to the same operations.
BG Wealth Sharing Promised 60% Monthly Returns Through Recruitment-Based Trading Codes
Regulators described DSJ as a purported crypto exchange tied to passive investments and AI-enabled trading claims. The order states that BG Wealth sent investors trading codes through Bonchat, a messaging app, and instructed them to enter the codes on DSJ's purported crypto exchange. The process gave investors little control over trades while making the platform appear active. It also rewarded recruitment, allowing participants to receive more trading codes by bringing others into the program.
The regulator stated that recruiters allegedly lured investors with claims that a small initial deposit could generate lifetime monthly income and turn participants into millionaires within months through aggressive recruitment bonuses. The scheme used several pressure points to build investor confidence. Regulators cited claims of a 99.6% success rate, guaranteed principal protection, monthly returns of at least 60%, and a doubling of principal in about 40 days. Those promises made the platform appear systematic and low-risk. The order indicates investors depended on expert systems, AI-enabled strategies, and scheduled trading codes.
Investors Faced 20% Withdrawal Fee and Later 12% Charge for Taxes and Transfers
The emergency cease and desist order states that investors seeking withdrawals faced a handling fee of about 20% of account value. Respondents presented the charge as an anti-arbitrage and anti-money laundering measure. Texas also reported that BG Wealth later demanded another 12% from each investor's account value. That payment was tied to taxes and account transfer fees.
The regulator noted that after disabling standard account withdrawals, the operators demanded that victims pay an additional 12% exit tax or compliance fee out of pocket before any funds could be released. The exit strategy created another risk for investors. After regulatory warnings, respondents blamed DSJ for fraud claims and directed investors toward HQIEX, described in the order as a replacement exchange service. That shift could keep victims engaged while adding uncertainty. It also redirected attention from withdrawals, missing disclosures, fund custody, trading activity, and commingling concerns.
Texas Joins Washington and Hawaii in Formal Securities Action Against BG Wealth Sharing
Texas joins Washington and Hawaii in taking formal state securities action involving BG Wealth Sharing or affiliated entities. Utah and Alaska also issued investor warnings tied to BG Wealth Sharing and DSJ Exchange, but those alerts were not formal cease and desist orders. The broader response shows how the operation reached investors across several states.
FAQ
What did the Texas State Securities Board do on June 3?
The Texas State Securities Board issued an emergency cease and desist order on June 3 against BG Wealth Sharing LTD, DSJ Exchange PTY Ltd, BG Wealth Sharing Group LLC, Thaddious Thomas, and Gagandeep Sarkaria for allegedly operating a crypto investment and multilevel marketing scheme targeting Texas investors.
What withdrawal fees did BG Wealth Sharing investors face?
Investors seeking withdrawals faced a handling fee of about 20% of account value, presented as an anti-arbitrage and anti-money laundering measure. BG Wealth later demanded another 12% from each investor's account value tied to taxes and account transfer fees.
Which states took action against BG Wealth Sharing?
Texas, Washington, and Hawaii took formal state securities action involving BG Wealth Sharing or affiliated entities. Utah and Alaska issued investor warnings tied to BG Wealth Sharing and DSJ Exchange, but those alerts were not formal cease and desist orders.
