- The investment operation involving BG Wealth Sharing and DSJ Exchange (DSJ) collapsed after $92 million was moved across blockchain networks between April 27 and May 3.
- According to ZachXBT, more than $41.5 million was frozen in the joint operation by Tether, Binance Security Team, OKX, and U.S. law enforcement.
- At least 13 regulators worldwide, including the Alberta Securities Commission (ASC), Washington State’s Department of Financial Institutions (DFI), and the UK’s Financial Conduct Authority (FCA), have issued warnings before the collapse.
On May 5, ZachXBT, a popular on-chain investigator, shared a detailed post on the X (formerly known as Twitter) on how he helped in the crackdown on the BG Wealth Sharing Ponzi scheme, which collapsed last week.
Last week, a major cryptocurrency investment scheme run by BG Wealth Sharing and its trading platform DSJ Exchange (also known as DSJEX) ended after ZachXBT officially announced the collapse of this sharing ponzi scheme. This development comes after months of warnings from financial regulators across the world.
BG Wealth, DSJEX Scam Hits $150 Million.
According to the official website, BG Wealth used to be called an investment group and claimed to be the world’s largest hedge fund. This platform promised investors high returns through cryptocurrency trading on the DSJ Exchange platform.
People who joined were asked to deposit funds, mostly in USDT, which is a type of stablecoin from Tether. They were then given daily trading signals through private messaging apps like BonChat, Telegram, or WhatsApp. The platform has shown fake profits on user accounts to create trust with its users.
However, this scheme depended on recruitment, in which old members were forced to bring in new investors by promising them referral bonuses and tiered rewards.
How the Scheme Worked and Why Regulators Entered the Matter
In the last few months, regulators have been issuing warnings about the Ponzi scheme operated by BG Wealth Sharing and its trading platform DSJ Exchange, saying that it has unrealistic guarantees. The platform claimed that the investments could double very quickly with zero risk. The scheme was constantly changing website domains to avoid detection.
In reality, neither BG Wealth Sharing nor DSJ Exchange was registered (with recognized financial authorities such as the SEC, FCA, or ASC) to run their operations, including investment or trading services, in any of the jurisdictions that have issued alerts.
In February, the Alberta Securities Commission (ASC) issued a public warning regarding this matter. The commission noted that the scheme was using AI-based signals along with recruitment incentives. It also confirmed that the operation had no registration in Alberta.
Washington State’s Department of Financial Institutions (DFI) added this Ponzi scheme to its Investment Scam Tracker in April 2026. On May 4, the DFI changed its alert to highlight complaints of an advance fee scam.
In this type of fraud, the platform was asking for extra payments from users in the name of taxes or fees to withdraw their own money.
The same kind of alerts were issued by the other regulators in various regions, such as Utah, the United Kingdom’s Financial Conduct Authority, New Zealand, Tonga, Smoa, the Philippines, and more. In total, around 13 different alerts were issued across many countries. All of these warnings stated that the entities made false claims about having SEC licensing or approvals. Moreover, to make their platform look legit, they also created fake documents.
ZachXBT Helps in the Investigation to Freeze Funds
According to ZachXBT, the scheme collapsed between April 27 and May 3, 2026, after the platform stopped withdrawals completely. After this, the platform operator started demanding additional fees from its users.
“On May 2, Stephen Beard posted a video claiming DSJ would IPO soon and demanded a 12% “tax” on account balances as part of the regulatory process. By this point, withdrawals had already been disabled,” ZachXBT stated in the post on X.
This is the same pattern that is witnessed in most exit scams. Between April 27 and May 3, more than $92 million was moved across different blockchain networks. According to ZachXBT, investigators were trying to hide where the money was going.
ZachXBT is working with many partners to stop further losses. These included Tether, the Binance Security Team, OKX, and United States law enforcement. In this joint operation, they have managed to freeze more than $41.5 million. This joint coordination between cryptocurrency exchanges and authorities has been praised as a positive step in reducing the damage from large-scale fraud.
According to the official data, the total amount involved in the scheme was approximately around $150 million. Not just this, some different analysts have mentioned that even more money is transacted through the associated addresses. In this Ponzi scheme, users were targeted through social media and private groups. The scam has affected many people around the world, including in India and other regions.
Crypto Sector Shaken Through Hacks and Scams
While the crypto sector is growing through mainstream adoption and clear regulatory frameworks, it is still juggling to provide it protection from cyber attacks and scams. In the last few months, crypto users have lost millions of dollars of funds in bizarre hacks and scams.
In April, the Kelp DAO bridge was compromised in a sophisticated social engineering attack linked to North Korea and lost over $292 million, making it one of the biggest hacks of this year.
This exploit has shaken the entire DeFi sector as many altcoins, such as AAVE, plunged dramatically. For a small period of time, this created uncertainty in the DeFi sector as investors have started pulling out their money. However, AAVE has launched DeFi United with a group of DeFi platforms to cover bad debt in the $292 million Kelp DAO exploit.
Also Read: WLFI Sues Justin Sun Over “Smear Campaign” Against Project
