Texas Issues Cease and Desist Against Alleged Crypto Scheme
- The Texas State Securities Board issued an emergency cease and desist order against BG Wealth Sharing LTD and DSJ Exchange PTY Ltd on June 3.
- Regulators cited claims of a 99.6% trading success rate, guaranteed principal protection, and monthly returns of at least 60%.
- Investors faced withdrawal hurdles, including a handling fee of about 20% and an additional 12% charge tied to taxes and account transfers.
- BG Wealth allegedly used aggressive recruitment bonuses to lure investors with promises of becoming millionaires within months.
- Texas joins Washington, Hawaii, Utah, and Alaska in taking action or issuing warnings against BG Wealth Sharing or affiliated entities.
The Texas State Securities Board has taken decisive action against BG Wealth Sharing LTD and DSJ Exchange PTY Ltd for allegedly operating a crypto investment scheme promising unrealistic returns and low-risk investments. Investors were misled by claims of high success rates and faced significant withdrawal fees that reduced their ability to access funds.
This case highlights the importance of regulatory oversight in protecting investors from schemes that promise guaranteed returns without substantial risk disclosure.( Source)
