ZachXBT Helps Freeze $41.5 Million After $150 Million Crypto Ponzi Scheme Collapse

Blockchain investigator ZachXBT coordinated with Tether, Binance, OKX, and US law enforcement to freeze $41.5 million in assets after the collapse of DSJ Exchange and BG Wealth Sharing, a Ponzi scheme that took more than $150 million from victims. Tether froze $38.4 million on May 4, 2026. US authorities had seized the bgwealthsharing.com website on April 23, 2026, though the scheme continued operating until withdrawals were blocked in early May.

DSJ Exchange Ponzi scheme collapse

• ▪The DSJ Exchange and BG Wealth Sharing scam continued to operate for some time after the April 23, 2026 website seizure until the withdrawal function was completely blocked.
• ▪US authorities seized the website bgwealthsharing[.]com on April 23, 2026.
• ▪A crypto Ponzi scheme operating under the names DSJ Exchange (DSJEX) and BG Wealth Sharing collapsed in the week ending May 3, 2026.
• ▪The DSJ Exchange and BG Wealth Sharing Ponzi scheme involved more than $150 million.
• ▪Thirteen regulators in five continents had issued public warnings against DSJ Exchange and BG Wealth Sharing prior to the collapse.
• ▪Withdrawal of money from the DSJ Exchange platform had stopped functioning by May 2, 2026.
• ▪The DSJ Exchange and BG Wealth Sharing scam started in 2025.
• ▪The DSJ Exchange and BG Wealth Sharing scheme offered investors a return of between 1.3% and 2.6% daily, plus referral and ranking bonuses.
• ▪On May 2, 2026, a video purporting to be filmed with Stephen Beard was uploaded, saying DSJ Exchange would launch its initial public offering and would require 12% of users' account balances in taxes.

Scam operation tactics

• ▪The DSJ Exchange and BG Wealth Sharing scam used a constant change of domain names and hot wallets.
• ▪The DSJ Exchange and BG Wealth Sharing scam used a fictitious CEO called Stephen Beard as the public face.
• ▪The DSJ Exchange and BG Wealth Sharing scam recruited members and provided fake trade signals in a group on BonChat, a messaging app that originated from Hong Kong.
• ▪BG Wealth Sharing was an investment firm related to DSJ Exchange.

Asset freezing coordination

• ▪An additional $3.1 million was frozen at various services and exchanges related to the DSJ Exchange and BG Wealth Sharing scheme.
• ▪Tether froze $38.4 million on May 4, 2026, based on ZachXBT's findings.
• ▪ZachXBT was part of the team responsible for coordinating an effort between Tether, the security team at Binance, OKX, and American law enforcement agencies to freeze assets worth $41.5 million from the DSJ Exchange and BG Wealth Sharing scheme.

Money laundering methods

• ▪The DSJ Exchange and BG Wealth Sharing illicit laundering techniques included token swap on Tokenlon, bridging through Bridgers, Butter Network, and USDT0, USDD wrap and unwrap, and consolidating transactions on multiple wallet addresses.
• ▪The biggest amount from the DSJ Exchange and BG Wealth Sharing scheme was deposited into the Cobo platform, totaling $63 million throughout the week of April 27 to May 3, 2026.
• ▪Between April 27 and May 3, 2026, illegal parties conducted over $92 million worth of transactions from DSJ Exchange and BG Wealth Sharing hot wallets on multiple chains and exchanges.
• ▪ZachXBT identified the transfer of more than $93 million in funds from the consolidations on multiple deposit addresses in the seven-day period between April 27 and May 3, 2026.

2 sources