- 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 has been frozen through cooperation with Tether, Binance Security Team, OKX, and US law enforcement.
- At least 13 regulatory bodies around the world, including the Alberta Securities Commission (ASC), Washington State’s Department of Financial Institutions (DFI), and the UK’s Financial Conduct Authority (FCA), had issued warnings ahead of the crash.
On May 5, ZachXBT, a popular investigator on the series, shared a detailed post on X (formerly Twitter) about how he was helping with the campaign on the X network. BG wealth sharing Ponzi schemeWhich 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) took place. Today, ZachXBT officially announced the collapse of this participatory Ponzi scheme.
This development comes after months of warnings from financial regulators around the world.
BG Wealth, DSJEX Scam Reaches $150 Million.
According to the official website, BG Wealth was called an investment group and was claimed to be the largest hedge fund in the world. This platform promised investors high returns by trading cryptocurrencies on the DSJ Exchange platform.
People who joined were asked to deposit money, mostly in USDT, a type of digital currency called Tether. They were then given daily trading signals through private messaging apps such as BonChat, Telegram or WhatsApp. The platform showed fake profits on user accounts to create trust with its users.
However, this scheme relied on recruitment, where old members were forced to bring in new investors by promising them referral bonuses and tiered bonuses.
How the scheme worked and why the organizers got into the matter
In the past few months, regulators have issued warnings about a Ponzi scheme run by BG Wealth Sharing and its trading platform DSJ Exchange, saying it had unrealistic safeguards. The platform was saying that investments could compound very quickly with what they called “zero risk.” The scheme used many different website domains that kept changing to avoid detection.
In fact, neither BG Wealth Sharing nor DSJ Exchange is registered to run operations, including investment or trading services, in any of the jurisdictions that issued the alerts.
In February, the Alberta Securities Commission (ASC) issued a public warning regarding the issue. The committee noted that the scheme was using artificial intelligence-based signals in combination with recruitment incentives. She also confirmed that the operation had no registration in Alberta.
The Washington State Department of Financial Institutions (DFI) added this Ponzi scheme to its investment fraud tracker in April 2026. On May 4, the Washington State Department of Financial Institutions changed its alert to highlight complaints of advance fee fraud.
In this type of scam, the platform was requesting additional payments from users in the name of taxes or fees to withdraw their own money.
The same type of alerts have been issued by other regulatory bodies in different regions, such as Utah, the Financial Conduct Authority in the United Kingdom, New Zealand, Tonga, Samoa, the Philippines, and others. In total, about 13 different alerts have been issued in several countries. All of these warnings were that the entities had made false claims about having an SEC license or approvals. To make their platform look legitimate, they also created fake documents.
ZachXBT is assisting in the investigation into the freezing of funds
According to ZachXBT, the scheme collapsed between April 27 and May 32026, after the platform stopped withdrawals completely. After that, the platform operator started demanding additional fees from its users.
“On May 2, Stephen Baird posted a video claiming that DSJ would soon go public and demanded a 12% ‘tax’ on account balances as part of the regulatory process. By this point, withdrawals had already been disabled,” ZachXBT said in the post on X.
This is the same pattern we have seen in most of the exit Tricks. Between April 27 and May 3, more than $92 million was transferred across different blockchain networks. According to ZachXBT, investigators were trying to hide where the money was going.
ZachXBT is working with several partners to stop further losses. These include Tether, Binance Security Team, OKX, and US law enforcement. In this joint operation, they were able 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 caused by large-scale fraud.
According to official data, the total amount included in the scheme amounted to about $150 million. Not only this, some different analysts have mentioned that more funds are being transacted through linked addresses. In this Ponzi scheme, users were targeted through social media and private groups. The scam has affected many people around the world, including India and other regions.
The cryptocurrency sector has been shaken by hacks and fraud
While the cryptocurrency sector is growing through mainstream adoption and clear regulatory frameworks, it still strives to provide protection from cyber attacks and scams. In the past few months, cryptocurrency users have lost millions of dollars in funds to bizarre hacks and scams.
In April, Seaweed dao Bridge was compromised in a sophisticated social engineering attack linked to North Korea and lost more than $292 million, making it one of the largest hacks of the year.
This exploit has rocked the entire DeFi sector like many altcoins, e.g ghostfell dramatically. For a short period of time, this created uncertainty in the DeFi sector as investors began withdrawing their funds. However, AAVE launched DeFi United with a group of DeFi platforms to cover bad debts in the $292 million Kelp DAO exploit.
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