ZachXBT reported that DSJEX and BG Wealth ran a crypto Ponzi scheme that collected over $150 million from investors before collapsing. The scheme used fake trading signals, daily return promises, and referral rewards to attract users. After tracing more than $93 million in outflows, ZachXBT helped Tether, Binance, OKX, and U.S. law enforcement freeze over $41.5 million linked to the case
On-chain investigator ZachXBT revealed new details about the collapse of the DSJ Exchange (DSJEX) and BG Wealth Sharing crypto scheme, which allegedly collected more than $150 million from investors before shutting down operations last week. Authorities and crypto firms have already frozen over $41.5 million connected to the case after tracing suspicious blockchain activity.
DSJEX and BG Wealth Promised Daily Returns
According to posts shared by ZachXBT on X, DSJEX operated as a fake crypto trading platform while BG Wealth Sharing promoted investment opportunities tied to the exchange. The scheme reportedly started in 2025 and attracted users through social media promotions and referral programs.
The operation used a fake executive named Stephen Beard, who presented himself as a professor and public representative of the platform. Investors were promised daily returns ranging from 1.3% to 2.6%. The project also offered referral commissions and bonus rewards tied to recruitment levels.
2/ DSJ / BG has been running since 2025, advertising 1.3% – 2.6% daily returns with referral commissions and rank-based bonuses.
DSJ = fake trading platform
BG = investment groupA fictitious CEO named Stephen Beard fronted the platform, while domains and hot wallets rotated… pic.twitter.com/ve1XiiCFql
— ZachXBT (@zachxbt) May 5, 2026
ZachXBT stated that Beard shared fake trading signals through BonChat, a messaging application widely used in Hong Kong. Victims were reportedly encouraged to follow those signals on DSJEX while being told their crypto investments were generating profits.
The Washington State Department of Financial Institutions said the companies falsely claimed registration with the US Securities and Exchange Commission. However, regulators found that neither DSJEX nor BG Wealth had valid SEC registration records.
Regulators Issued Warnings Before Collapse
Authorities across multiple regions had already warned investors about the firms before the platform collapsed. Regulators from the United Kingdom, Australia, the Philippines, and the United States published fraud alerts connected to the operation.
The UK’s Financial Conduct Authority, Australia’s Australian Securities and Investments Commission, the Philippines’ Securities and Exchange Commission, and Washington State’s DFI were among the agencies that issued notices against the companies.
On April 23, US law enforcement seized one of BG Wealth’s domains during an operation involving Operation Level Up and the Scam Center Strike Force. Despite that action, the scheme reportedly continued running for another week.
Last Saturday, Beard released a video claiming DSJEX would soon become a public company. He also demanded a 12% “tax” on investor account balances as part of a supposed regulatory process. ZachXBT noted that withdrawals had already been disabled before the announcement was made.
“DSJEX would soon go public,” Beard claimed in the video released before the platform stopped operations.
Millions Laundered Across Blockchain Networks
ZachXBT reported that more than $92 million in crypto assets moved across several blockchain networks between April 27 and May 3. The funds reportedly passed through token swaps, bridges, and multiple wallet addresses to make tracing more difficult.
The investigator stated that the scammers frequently rotated domains and hot wallets to avoid detection. Blockchain analysis later linked large Solana and Tron deposits to exchange activity connected with Binance.
According to ZachXBT, about $63 million moved through custody provider Cobo. He also identified matching Tron withdrawals after reviewing transaction timing patterns across chains.
“I traced $93M+ in outflows from consolidations to multiple deposit addresses,” ZachXBT wrote on X while sharing wallet details connected to the movement of funds.
The investigator added that he provided information to Tether, Binance, OKX, and US law enforcement agencies.
Tether and Exchanges Freeze More Than $41M
Following the investigation, Tether froze approximately $38.4 million linked to the operation on May 4. Another $3.1 million was frozen across several exchanges and crypto services, bringing the total frozen amount to more than $41.5 million.
Despite the asset freeze, ZachXBT said the estimated $150 million connected to the scheme could still be lower than the real figure. He explained that the operation had been active since 2025 and involved thousands of suspected victim withdrawals.
“Reading through victim posts, many still seem to be in denial that they were scammed,” ZachXBT stated. The investigator also advised affected users to file police reports in their respective countries to support ongoing investigations and possible recovery efforts tied to the frozen crypto assets.
