In a shocking turn of events in the cryptocurrency landscape, the DSJ Exchange, commonly referred to as DSJEX, and the BG Wealth Sharing Ponzi scheme were reported to have collapsed last week, having duped investors out of more than $150 million. On-chain investigator ZachXBT revealed that these fraudulent operations not only misappropriated vast sums of money but also attempted an elaborate cross-chain laundering scheme that moved over $92 million in mere days and triggered the coordinated freezing of over $41.5 million in assets.
ZachXBT took to social media on X, detailing his role in spearheading a collaborative initiative that included Tether, Binance Security Team, OKX, and US law enforcement. He tracked the suspicious fund transfers between April 27 and May 3, uncovering attempts by the illicit players to obscure their financial trails across multiple blockchain platforms.
“The $150M+ DSJ Exchange (DSJEX) / BG Wealth Sharing Ponzi scheme collapsed last week,” ZachXBT stated decisively. He elaborated that during the laundering spree between April 27 and May 3, illicit actors moved over $92 million across chains to hide their tracks. The subsequent efforts led to the freezing of over $41.5 million in various exchanges and services.
$150M Crypto Ponzi Scheme Faces Regulatory Scrutiny
According to ZachXBT, both DSJ and BG have been operating since early 2025, luring investors with false promises of daily returns ranging from 1.3% to 2.6% coupled with alluring referral bonuses. He characterized DSJ as nothing more than a fraudulent trading platform, with BG functioning as the investment front tied to this scheme. Allegedly, a figure named Stephen Beard posed as the CEO, while the infrastructure, including domains and hot wallets, was constantly switched to evade law enforcement.
The recruitment strategy for this crypto con was predominantly conducted through social media channels rather than through sophisticated decentralized finance (DeFi) methods. Fake trading signals were reportedly disseminated through groups on BonChat, a messaging application popular in Hong Kong. Early coverage of this fraudulent investment scheme was credited to platforms like Dehek and BehindMLM.
Regulatory agencies across the globe were already sounding the alarm prior to the scheme’s downfall. ZachXBT noted that 13 regulators across five continents had been alerting the public regarding DSJ and BG. In a significant move, US law enforcement seized the domain bgwealthsharing.com on April 23, 2026, underscoring the scheme’s dubious operations.
The unraveling of the Ponzi scheme followed a familiar trajectory. Initially, users experienced withdrawal suspensions, and soon after, were asked for additional funds. On May 2, Beard posted a video announcing an impending IPO for DSJ, while simultaneously requesting a 12% “tax” on account balances, all under the guise of compliance with regulatory requirements. By this moment, numerous withdrawals had been completely disabled.
ZachXBT described the laundering efforts as utilizing various methods and platforms. He tracked funds moving from DSJ and BG’s hot wallets through several pathways, including Tokenlon swaps, various bridge networks, and consolidations over hundreds of addresses. Over the course of just days, he traced over $93 million in outflows, with a significant portion directed to Cobo-linked deposit addresses, totalizing $63 million in received assets.
As a testament to the investigative efforts, Tether successfully froze $38.4 million on May 4, alongside more than $3.1 million from various other services and exchanges linked to the criminal operation. Although ZachXBT characterized this case as less technically intricate than other crypto fraud investigations, the scale of the victimization and the rapidity of the laundering attempts rendered it significant.
“While these Chinese investment frauds are often evident, they typically prey on the unsophisticated retail investor via social media,” he warned, reflecting on the victims’ reactions which show many struggling to accept that they were scammed. For those affected by BG or DSJ, ZachXBT advised filing police reports in their respective jurisdictions, with a recommendation for US victims to visit IC3.gov. Furthermore, ZachXBT cautioned that the estimated $150 million loss might greatly understate the genuine impact, as the scheme had flourished since 2025, generating numerous victim withdrawal requests.
At the time of reporting, the total crypto market capitalization stood at approximately $2.68 trillion.
