Oklahoma securities regulators are warning investors about a suspected cryptocurrency fraud scheme promising “risk-free” and guaranteed returns.
The Oklahoma Department of Securities says the scheme is linked to BG Wealth Sharing Ltd alongside cryptocurrency trading platforms DSJ Exchange PTY Ltd and HQI Exchange.
None of the entities are registered to operate in Oklahoma, and regulators are urging investors to stop sending money immediately.
According to the agency, the operation relies on social media recruitment and referral incentives that encourage existing users to bring in new investors.
BG Wealth has promoted itself as a large global hedge fund and has reportedly cycled through multiple websites as earlier versions were taken down. Investors are also directed to private messaging channels of the likes of Telegram and third-party apps.
State officials say BG Wealth and DSJ have falsely claimed regulatory approval from the U.S. Securities and Exchange Commission.
Similar claims have already triggered enforcement actions in other states, including cease-and-desist orders issued by regulators in Washington, Hawaii, and Utah.
Investors are typically required to shell out additional “fees” before withdrawals are processed, often described as taxes, commissions, or verification costs. Victims report that even after paying these charges, access to funds remains blocked.
Other recent cases
Several recent crypto fraud cases in the United States follow a very similar pattern to the one flagged in Oklahoma, especially the combination of fake exchanges, “guaranteed returns,” and withdrawal restrictions tied to extra fees.
More recently, the Fedra Exchange and similar fake trading platforms flagged by state regulators in Texas and California followed a nearly identical model.