ZachXBT Reports $150M Ponzi Collapse, With $41.5M In Assets Frozen Amid Investigation
On-chain investigator ZachXBT reported the collapse of the DSJ Exchange (DSJEX) and BG Wealth Sharing scheme, which he described as a large-scale Ponzi operation involving greater than $150 million in estimated inflows.
According to the findings, between April 27 and May 3, over $92 million in allegedly illicit funds was moved throughout a number of blockchains in an try to obscure transaction trails, with roughly $63 million routed to the custody supplier Cobo. Assistance was supplied by ZachXBT to Tether, Binance’s safety staff, OKX, and US regulation enforcement, leading to greater than $41.5 million in property being frozen to this point.
According to ZachXBT, the scheme, which was stated to have operated since 2025, allegedly promoted day by day returns starting from 1.3% to 2.6%, alongside referral incentives and rank-based bonus buildings. DSJ was described as a fabricated buying and selling platform, whereas BG functioned as a purported funding group. A fictional government recognized as “Stephen Beard” was used because the public-facing consultant, whereas domains and sizzling pockets addresses have been incessantly rotated to keep away from enforcement motion.
Recruitment exercise and trading-related alerts have been reportedly distributed via a BonChat group, a messaging utility generally utilized in Hong Kong. Early protection of the case was attributed to investigative journalist Danny de Hek and BehindMLM. In complete, 13 regulators throughout 5 continents had beforehand issued public warnings relating to DSJ and BG.
US regulation enforcement reportedly seized the area Bgwealthsharing[.]com on April 23, 2026. Shortly after, on May 2, a video attributed to “Stephen Beard” claimed that DSJ would pursue an preliminary public providing and launched a 12% “tax” on account balances framed as a part of a regulatory course of, regardless of withdrawals already being disabled at that time.
Investigators Track $93M In Flows And Freezes Amid Ongoing Enforcement Actions
Following the collapse, funds from DSJ and BG-linked wallets have been allegedly routed via a number of obfuscation strategies, together with Tokenlon swaps, cross-chain bridging by way of Bridgers, Butter Network, and USDT0, in addition to wrapping and unwrapping of USDD, earlier than being consolidated throughout lots of of addresses.
The investigator reported that analytical monitoring recognized greater than $93 million in outgoing flows between April 27 and May 3, 2026, with important parts directed to centralized platforms. Around $63 million was related to Cobo-linked addresses, whereas roughly $30 million was linked to OKX handle. Further tracing included timing evaluation of withdrawals, figuring out deposits throughout Solana and Tron networks routed to exchanges resembling Binance, with corresponding withdrawal patterns shared with related events.
As a results of coordinated enforcement exercise, roughly $38.4 million was frozen by Tether on May 4, with a further $3.1 million frozen throughout different providers and exchanges.
The analyst highlighted that the scheme was focusing on retail traders via social media channels, typically interesting to much less skilled members. Despite mounting proof, some affected customers reportedly continued to dispute the fraudulent nature of the operation. The complete scale of losses is taken into account probably larger than preliminary estimates, on condition that the scheme is believed to have been lively since 2025, with numerous victim-related withdrawals already noticed throughout exchanges.
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