Bitcoin Magazine

SEC Charges Two Companies in $130 Million Crypto Trading Scheme

The Securities and Exchange Commission charged two foreign-operated, Colorado-incorporated companies with running a crypto investment fraud that used false federal filings to raise more than $130 million from tens of thousands of retail investors.

The defendants are BG Wealth Sharing Ltd. and DSJ Exchange Pty Ltd. A complaint filed in the U.S. District Court for the Northern District of California alleges that from at least October 2025 through June 2026, the companies induced investors in more than 40 states and several U.S. territories to join a “wealth-sharing program.” 

Participants were promised risk-free returns generated by so-called signals for crypto asset trading.

According to the complaint, BG Wealth claimed to be the world’s largest hedge fund, claimed registration with the SEC as an investment adviser, and said it partnered with a licensed and secure crypto trading platform, DSJ Exchange. 

The SEC says none of those claims were true. The complaint alleges the companies submitted false Form ADV and Form D filings to the SEC. Those filings were viewable on the agency’s website and shared with investors as evidence that the SEC had licensed or approved the firms.

Laura D’Allaird, chief of the SEC Enforcement Division’s Cyber and Emerging Technologies Unit, described the operation in a statement. 

SEC: Crypto scheme was ‘a Ponzi-like tactic’

“This alleged scheme was well-planned,” she said, citing social media, encrypted messaging channels, weekly live videoconferences and a mobile app used to engage investors. The complaint alleges the defendants displayed fake certificates bearing the SEC’s seal and made periodic payments to some investors, “a Ponzi-like tactic,” while misappropriating the remaining funds.

The SEC charged both companies with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

It charged BG Wealth with violating Sections 204(a) and 207 of the Investment Advisers Act of 1940. The agency seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against both companies, along with conduct-based injunctions against BG Wealth.

The Form ADV and Form D filings have been removed from the SEC website.

The SEC’s Office of Investor Education and Assistance has issued investor alerts warning that scammers are using exempt reporting adviser filings to create a false impression of legitimacy. The agency encourages investors to check the background of anyone offering or selling a crypto investment through Investor.gov.

The SEC said it received assistance from the Alberta Securities Commission, the Hawaii Department of Commerce and Consumer Affairs, the Texas State Securities Board, the Utah Division of Securities, the Washington State Department of Financial Institutions, the Wisconsin Department of Financial Institutions, and other authorities.

This post SEC Charges Two Companies in $130 Million Crypto Trading Scheme first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Russia Approves Securities Group to Oversee Crypto Exchanges

The National Association of Securities Market Participants, known as NAUFOR, has won self-regulatory organization status for digital depositories and crypto exchanges. The Central Bank of Russia made the decision on October 29, according to Interfax.

The move turns a law into a working system. Russia’s framework, “On Digital Currency and Digital Rights,” passed the State Duma in July. It requires exchange operators and depositories to sit in central bank registries, and it requires them to join an SRO. 

Interfax reports that the registry lists 23 crypto exchanges and eight digital depositories, including VTB, Sberbank, and units of T-Technologies, the holding company behind T-Bank. Firms on those registries have 90 days to join an SRO. In short, an SRO writes industry standards, monitors members, and represents the industry to regulators.

NAUFOR says it will help shape standards for digital asset markets and push the central bank on rule changes. Earlier in October, it received the same status for information system operators. The association has operated since 1996 and counts 725 members, including brokers, dealers, and fund managers from traditional markets.

JUST IN: Russia's central bank approved NAUFOR as a self-regulatory body for crypto exchanges and custodians.

Russia's new crypto law requires all registered crypto firms to join a self-regulatory organization within the next 90 days. pic.twitter.com/pchpFYg6KP

— Bitcoin Magazine (@BitcoinMagazine) October 29, 2026

Russia’s crypto legal gateway

Traditional finance built NAUFOR’s model for stocks and bonds. Placing the same body over bitcoin exchanges and custody gives the state a familiar hand on the wheel. 

Bitcoin Magazine reported in July that the law stops bitcoin from becoming money for everyday purchases. Domestic crypto payments stay banned. The law licenses exchanges and depositories, caps retail purchases, and opens a state-supervised channel for cross-border trade, a route that helps Russia move around Western sanctions.

The details matter for users. A depository would record holdings, and one reading of the framework lets it restrict transfers to personal wallets. Non-qualified retail buyers can purchase up to 300,000 rubles a year through a single intermediary, near $3,800. 

Qualified investors face higher ceilings. These choices shape who can use the platforms and how.

Earlier this fall, the Moscow Exchange reportedly began testing cryptocurrency trading with professional market participants and planned to launch trading this December. 

The exchange intended to use existing infrastructure and a partner digital depository following the introduction of Russia’s new cryptocurrency regulations in September. 

Sberbank also received approval to custody Bitcoin and other cryptocurrencies, while President Vladimir Putin had previously acknowledged Bitcoin’s resistance to being banned.

This post Russia Approves Securities Group to Oversee Crypto Exchanges first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Crypto Midterm Election Spending Reaches $176 Million as Industry Builds for the Next Congress

The crypto industry has spent about $176 million across more than 100 midterm races this cycle, according to a Reuters review of campaign spending. The money is part of a plan to build a bipartisan coalition in Congress that can protect the sector after President Donald Trump leaves office.

Fairshake, the industry’s largest super PAC, leads the effort. The group spent $196 million in the 2024 cycle and is directing strategy again. Through October 20, Fairshake and its affiliate PACs had spent about $150.8 million this year, while other crypto groups spent around $25 million. Fairshake said 53 of the 58 candidates it backed in primaries or special elections won, and those candidates will be on the November 3 ballot, per Reuters. 

Super PACs can raise and spend unlimited sums but cannot coordinate with campaigns. Fairshake’s ads run through affiliates with names such as “Defend American Jobs” and “Protect Progress,” and they often focus on taxes and immigration rather than crypto. Voters have little way of knowing who pays for them. 

The watchdog group Public Citizen said crypto was the largest corporate spender in federal races in 2026. Crypto firms led corporate political spending at that point, citing the same watchdog’s analysis.

Coinbase, Ripple and Andreessen Horowitz are the primary financiers. Industry strategists and campaign staff said the money is a calling card meant to build relationships with elected officials. 

Crypto’s long game in Congress

Colin McLaren, head of government relations at the Solana Policy Institute, which has given $4.9 million to the midterms, called it “an investment in the future,” per Reuters.

The approach reflects a sharp change. In 2018, lawmakers could not secure a room in the House or Senate office buildings for the first bipartisan crypto roundtable, so they met at the Library of Congress. Then, under the Biden administration, the Securities and Exchange Commission levied more than $6 billion in penalties across 98 cases, according to a Georgetown University Law study. 

Executives concluded they needed political force. Coinbase Chief Policy Officer Faryar Shirzad helped launch Stand With Crypto and Fairshake in 2023. The number of lawmakers rated “A” by Stand With Crypto rose to 332 from 96 when the group launched.

Legislation followed. The GENIUS Act, enacted in 2025 with broad bipartisan support, created the first federal regulatory framework for stablecoins. The industry’s next goal, the Clarity Act, would place oversight under the Commodity Futures Trading Commission. That bill stalled this session. Senate Democrats blocked it from reaching a final vote over an ethics provision that would have forced the Trump family to sell its crypto holdings. 

Fairshake helped defeat Sherrod Brown, who chaired the Senate Banking Committee, in 2024, and the industry has since spent more than $68 million on his rematch against Republican Jon Husted, according to AdImpact. 

Fairshake’s ads against Brown do not mention crypto, and Brown’s campaign manager, Patrick Eisenhauer, said “the special interests are panicking.” In Illinois, Fairshake spent over $10.1 million attacking Lieutenant Governor Juliana Stratton and $2.5 million against state Representative La Shawn Ford, per Reuters, yet both are expected to win on November 3. 

Cameron and Tyler Winklevoss each gave about $13 million this cycle, most of it to MAGA Inc.

What voters think

Public attitudes are mixed. A September survey seen by Bitcoin Magazine of 1,545 U.S. adults by Ipsos for the DeFi Education Fund found that 22% have owned or used crypto, up from 18% in 2025. Only 19% believe the U.S. financial system is secure. 

The survey also found 35% say it is important for candidates to support building the next generation of financial technology in the United States. Only 13% said the same when the question named blockchain, crypto or DeFi. The DeFi Education Fund is a digital asset advocacy group, so its framing reflects that perspective. 

Stand With Crypto’s leadership has argued that the crypto vote will decide the midterms.

This post Crypto Midterm Election Spending Reaches $176 Million as Industry Builds for the Next Congress first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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Bitcoin Magazine

Stand With Crypto Director: The Crypto Vote Will Decide the Midterms | Mason Lynaugh

The midterms are November 3, and a shift in congressional power could reshape Bitcoin and crypto policy for years. Mason Lynaugh, Executive Director of Stand With Crypto, joins Grace Remington and Sean Hagan to break down the final push: 3.1 million advocates, 50 state chapters, 47 college chapters and 45 endorsed candidates. He explains why crypto voters are the low-propensity swing bloc campaigns spend millions to find, why the Clarity Act and GENIUS Act votes prove the issue is bipartisan, and why he expects the most pro-Bitcoin Congress in history no matter who wins.

Stand with Crypto: Check your registration, find your state’s deadline, and see where your candidates stand on crypto in one place: https://www.standwithcrypto.org/vote

Chapters:
0:00 Stand With Crypto’s Final Push: 3.1 Million Advocates and 45 Endorsed Candidates
1:18 The Voter Hub and Making the Next Congress the Most Pro-Bitcoin in History
2:12 Why Crypto Voters Are the Low-Propensity Swing Vote Campaigns Want
3:16 Tight Races Decided by Hundreds of Votes and Tens of Thousands of Advocates
4:08 Bipartisan Support: 100 Democrats on the Clarity Act and the GENIUS Act Vote
5:03 From 90 to 338 A-Rated Lawmakers in Three Years
5:44 Why Some Democrats Still Oppose Crypto and How Skeptics Come Around
7:32 Give Them a Job or Take It Away: Organizing Against Anti-Bitcoin Lawmakers
9:28 Fair Shake’s $95 Million vs. Volunteer Phone Calls
11:05 The GENIUS Act Rollout, Clarity Act Disappointment and Why AI Advocates Are Allies

DISCLAIMER: The views and opinions expressed in this show are those of the participants and do not necessarily reflect the official policy or position of BTC Inc., Bitcoin Magazine, or any affiliated entities. This content is provided for informational and educational purposes only and should not be construed as investment, legal, tax, or accounting advice. Nothing contained in this show constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or financial instruments. Viewers should consult their own advisors before making financial or business decisions.

This post Stand With Crypto Director: The Crypto Vote Will Decide the Midterms | Mason Lynaugh first appeared on Bitcoin Magazine and is written by Patrick Green.

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Bitcoin Magazine

Blockchain.com CEO: “Crypto Spring” has Arrived – Institutions Driving the Market

With the midterms just weeks away, how much political support does crypto really have? Blockchain.com Co-CEO Lane Kasselman says the digital asset sector has the most bipartisan support it’s ever had in Congress, and it’s only growing. He explains why the industry should keep its momentum no matter which party leads, even with the CLARITY Act stalled. Kasselman also breaks down Blockchain.com’s new options trading launch.

Chapters:
00:00 Blockchain.com Launches Options Trading
00:48 Is Crypto Bipartisan Heading Into the Midterms?
01:57 The CLARITY Act Stall and 30+ SEC and CFTC Rulemakings
03:08 The State-by-State Money Transmitter License Problem
04:05 How Institutions Took Over the Crypto Market
05:06 Is the Crypto Winter Over?
06:28 Self-Custody vs. Custodial Wallets Around the World
07:49 Blockchain.com as the Liquidity Layer for Tokenization
10:00 AI Agents and Blockchain.com’s June
10:56 Will AI Agents Settle in Stablecoins or Bitcoin?

DISCLAIMER: The views and opinions expressed in this show are those of the participants and do not necessarily reflect the official policy or position of BTC Inc., Bitcoin Magazine, or any affiliated entities. This content is provided for informational and educational purposes only and should not be construed as investment, legal, tax, or accounting advice. Nothing contained in this show constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or financial instruments. Viewers should consult their own advisors before making financial or business decisions.

This post Blockchain.com CEO: “Crypto Spring” has Arrived – Institutions Driving the Market first appeared on Bitcoin Magazine and is written by Patrick Green.

Bitcoin Magazine

CFTC Chair Says New Crypto Rulemaking Will Prevent Another FTX-Style Collapse

Pro-crypto regulator Mike Selig has said that pushing ahead with new rules will stop another collapse like FTX. 

Speaking on Fox Business Network’s Varney & Co. show Wednesday, the Commodity Futures Trading Commission Chair said that crypto exchanges will have the chance to register with the regulator in order to safeguard digital asset spot markets. 

Once one of the most popular crypto exchanges, FTX quickly and abruptly went bankrupt in 2022 due to mismanagement. Its founder, Sam Bankman-Fried, is now serving 25 years in prison for fraud and other crimes after $8 billion in customer funds was stolen. 

The CFTC and other regulators are pushing ahead with rulemaking for the crypto space, despite lawmakers last month blocking the long-awaited Clarity Act. 

“Four years ago, we saw the collapse of Sam Bankman-Fried’s FTX, where he stole over $8 billion in customer funds. That can’t happen under our regime,” Selig said. 

“Actually, Sam Bankman-Fried’s subsidiary that was CFTC registered, all the funds were safe and secure because they were segregated, and we have some of the most stringent requirements of any federal agency when it comes to markets — we want to bring that to the crypto world,” he added. 

Selig added that some exchanges may choose to remain under the state regimes, while others will register federally. 

The CFTC is relying on powers it already has to regulate crypto markets. The watchdog this week sought public comment on a framework that would create a new federal registration category, called a “crypto asset market,” for exchanges offering leveraged, margined or financed crypto trades to retail customers. 

Exchanges that don’t offer leverage could stay under state licenses. But the agency reads “leverage” broadly, which could bring even fully paid trades under its oversight unless customers take delivery of their crypto.

CFTC Chair Selig, formerly chief counsel at the SEC’s Crypto Task Force, last month said that the regulator was preparing for the transition of markets moving “24-7, on-chain.”  

Both the CFTC and Securities and Exchange Commission have taken a more friendly approach to regulating the crypto industry since U.S. President Donald Trump took power. 

This post CFTC Chair Says New Crypto Rulemaking Will Prevent Another FTX-Style Collapse first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

Bitcoin Magazine

US Investors Want to up Their Crypto Holdings: Charles Schwab

Forget stocks — U.S. investors are more interested in upping their bitcoin holdings, according to new research. 

Charles Schwab’s 2026 Modern Wealth Survey dropped on Wednesday, and showed that current cryptocurrency investors want to keep adding to their holdings. 

The research revealed that a total of six in 10 plan to invest more over the next 12 months — a higher share than among owners of all other investments measured, including ETFs (56%), stocks (52%), bonds (42%), and mutual funds (41%). 

“Existing cryptocurrency investors are certainly leaning in, particularly younger investors who are driving much of the interest and momentum in cryptocurrency,” Head of Digital Assets at Charles Schwab, Joe Vietri, said in a statement. 

“But to me, the bigger story is that cryptocurrency is increasingly viewed as a complement to traditional investments.”

Charles Schwab is the country’s largest custodian for registered investment advisors, and earlier this year began a phased rollout of Schwab Crypto to retail clients, giving them direct access to bitcoin trading along with educational content and professional support. 

Schwab also offers crypto-linked exchange-traded funds, bitcoin futures, and its own Schwab Crypto Thematic Index ETF. CEO Rick Wurster has said Schwab clients hold more than 20% of all crypto exchange-traded products across the industry.

Wednesday’s report added that one in five Americans overall own cryptocurrency today, and another one in five say they don’t own it but are interested in buying it. Among investors, nearly half own cryptocurrency. 

It further noted that millennials are the most likely to own cryptocurrency, and are more than four times the rate among Boomers. 

The online survey was conducted by Logica Research from August 24 to September 17, 2026, among a national sample of 2,000 Americans ages 21 to 75. 

This post US Investors Want to up Their Crypto Holdings: Charles Schwab first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

Bitcoin Magazine

SEC Proposes New Rules On Crypto Custody 

The U.S. Securities and Exchange Commission has proposed new rules to update how investment advisers and regulated funds hold assets, with a big focus on crypto.

In a statement Thursday, the Wall Street watchdog said it would allow advisers and funds acting through their advisers, to hold client crypto themselves, but only if no permitted custodian is available. 

Regulators are pushing ahead with rulemaking for the digital asset space despite lawmakers blocking the Clarity Act last month. 

JUST IN: SEC Chairman Paul Atkins releases a statement to address the custody of crypto assets.

"Since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class" pic.twitter.com/SbLR2HAeW1

— Bitcoin Magazine (@BitcoinMagazine) October 1, 2026

The long-awaited legislation — a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins — didn’t get the votes needed to advance. 

“Since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure. Unfortunately, our rules and regulations have not kept pace,” SEC Chairman Paul S. Atkins said in a statement.

“To that end, today’s proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before — and replacing the grey of uncertainty created by custody rules crafted for a bygone era.”

The regulator said in its proposed rules that records kept on a blockchain could count toward compliance, subject to conditions. 

It added that it would allow use of state trust companies as custodians for client and regulated fund crypto assets, subject to conditions.

Lawmakers blocked the Clarity Act in a procedural vote last month. Regulators had said before the vote that regardless of whether the landmark legislation passed, they’d still start regulating the crypto industry.  

The SEC before the vote sent a proposal to the White House aiming to “clarify the framework for the custody of crypto assets” for investment advisers and companies. 

Pro-crypto Atkins said he would still work to make the U.S. the “crypto capital of the world” regardless of the landmark legislation getting through. 

This post SEC Proposes New Rules On Crypto Custody  first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.