SEC Issues Cease and Desist: Orders BG Wealth to Stop Crypto Investment Operations in PH

The Philippine Securities and Exchange Commission (SEC) has issued a cease and desist order against BG Wealth Sharing Ltd. and its listed founder, Stephen Beard, for the unauthorized solicitation of investments. The order, finalized on May 20 by the regulator’s Enforcement and Investor Protection Department (EIPD), commands the entity to immediately halt the sale of unregistered securities and terminate its online presence.

What is a Cease and Desist Order?

• A cease and desist order is a legally binding mandate issued by a regulatory authority or court instructing an entity to immediately halt specific illegal practices or operations.
• Once issued, respondents are given a strict five-day window to legally contest the directive, failing which the order becomes permanent and leads to asset freezes and criminal indictments.

A copy of the full order is available at the end of the article.

Terms of the Enforcement Action

According to the official document:

• The EIPD found prima facie evidence that BG Wealth Sharing Ltd. operated in continuous violation of the Securities Regulation Code (SRC) and the Financial Products and Services Consumer Protection Act (FCPA).
• The directive applies to the company’s officers, directors, representatives, salesmen, promoters, and influencers.

The order further prohibits the named respondents from transacting any business involving funds in their depository banks. It also bars them from transferring, disposing of, or conveying any assets or properties under their direct or indirect custody. (Read More: Philippine SEC Investment Scam Watchlist: Public Advisories, Cease-and-Desist Orders, and Community Reports)

Evaluation of the Investment Program

The SEC stated that the group targeted the public, particularly Overseas Filipino Workers (OFWs), by promoting a cryptocurrency copy-trading program via the DSJ Exchange platform. The scheme promised a guaranteed daily compounded interest rate of 1.3% on a minimum investment of $500, equivalent to approximately ₱30,000.

Applying the Howey Test, the regulator determined that the program constituted an investment contract, which qualifies as a security under Philippine law. Because the entity lacked the required corporate registration and secondary license to sell or offer securities, the SEC classified the public offering as financial fraud.

Prior Alerts and Operational Collapse

The issuance of the order follows an initial investor advisory published by the SEC on Jan. 28, which warned the public to refrain from placing funds with the entity. The EIPD noted that despite the warning, the group continued to actively recruit investors through public social media channels, including Facebook.

The regulatory order also follows the operational shutdown of the platform earlier this month. BitPinas reported on May 4 that BG Wealth Sharing Ltd. had frozen user withdrawals while demanding a mandatory 12% “tax payment” from users to meet alleged audit requirements.

During the same period, the U.S. District Court for the District of Columbia seized the platform’s primary domain name in a coordinated action with the Federal Bureau of Investigation (FBI) and the Department of Justice (DOJ). Additional investor warnings were also published by the Financial and Consumer Affairs Authority of Saskatchewan and the Alberta Securities Commission in Canada. (Read More: BG Wealth Collapses in Apparent ‘Rug Pull’ as US Authorities Seize Website)

Full Cease and Desist Order vs BG Wealth Sharing

This article is published on BitPinas: SEC Issues Cease-and-Desist: Orders BG Wealth to Stop Crypto Investment Operations in PH

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