SEC stops BG Wealth crypto scheme
The Securities and Exchange Commission (SEC) has ordered “BG Wealth Sharing Ltd.” and an individual identified as Stephen Beard to immediately stop soliciting investments in the Philippines over alleged unauthorized securities offerings tied to cryptocurrency copy trading.
In a seven-page cease and desist order dated May 20, the SEC’s Enforcement and Investor Protection Department said the group had continued promoting its investment scheme despite an earlier advisory issued in January warning the public not to invest in the entity.
The SEC said BG Wealth Sharing allegedly enticed investors, particularly overseas Filipino workers, by promising returns of 1.3 percent daily through a crypto copy trading scheme using the DSJ Exchange platform.
The scheme required a minimum investment of $500 or around P30,000.
According to the SEC, the company was not registered either as a corporation or partnership in the Philippines. It also had no license to offer or sell securities and had not registered any securities with the Commission.
The regulator said the investment offer constituted an “investment contract,” which falls under the definition of securities under the Securities Regulation Code (SRC).
Citing the “Howey Test,” the SEC said the scheme involved an investment of money in a common enterprise with the expectation of profits derived primarily from the efforts of others.
The Commission added that BG Wealth Sharing’s use of Facebook and other online platforms to promote the investment scheme qualified as a public offering under SEC rules.
