Crypto on-chain investigator ZachXBT said the DSJ Exchange, also known as DSJEX, and BG Wealth Sharing Ponzi scheme collapsed last week after allegedly drawing in more than $150 million. The case now carries a second, market-relevant dimension: a rapid cross-chain laundering attempt that moved more than $92 million in less than a week and triggered a coordinated freeze of over $41.5 million.
ZachXBT said he helped lead an initiative involving Tether, Binance’s Security Team, OKX and US law enforcement after tracking the movement of funds between April 27 and May 3. According to his account, illicit actors attempted to obscure the money trail across multiple chains before a portion of the assets could be immobilized.
“The $150M+ DSJ Exchange (DSJEX) / BG Wealth Sharing Ponzi scheme collapsed last week,” ZachXBT wrote on X. “From April 27 – May 3, illicit actors laundered $92M+ across chains to obscure the trail. I helped lead an initiative with Tether, Binance Security Team, OKX, & US law enforcement that has since frozen $41.5M+.”
$150M Crypto Ponzi Collapses After Regulators Warned Investors
According to ZachXBT, DSJ and BG had been operating since 2025, promoting daily returns of 1.3% to 2.6% alongside referral commissions and rank-based bonuses. He described DSJ as a fake trading platform and BG as the investment group tied to the scheme. A purported CEO, Stephen Beard, allegedly fronted the operation, while domains and hot wallets were rotated regularly in an apparent effort to evade enforcement.
The crypto scheme’s recruitment engine, ZachXBT said, was built around social channels rather than sophisticated DeFi mechanics. Fake trading signals were allegedly pushed through a group on BonChat, a Hong Kong messaging app. He credited Dehek and BehindMLM for early coverage of the investment fraud.
Regulatory warnings had already been piling up before the collapse. ZachXBT said 13 regulators across five continents had publicly warned about DSJ and BG, while US law enforcement seized one BG-linked domain, Bgwealthsharing.com, on April 23, 2026.
The unraveling appears to have followed a familiar Ponzi pattern: withdrawals were disabled, then users were asked for more money. On May 2, ZachXBT said Beard posted a video claiming DSJ would soon pursue an IPO and demanded a 12% “tax” on account balances as part of a supposed regulatory process.
“By this point, withdrawals had already been disabled,” ZachXBT wrote.
The laundering trail, as described by ZachXBT, moved through several routes. Funds from DSJ and BG hot wallets were allegedly processed through Tokenlon swaps, Bridgers, Butter Network and USDT0 bridging, USDD wrapping and unwrapping, and consolidation across hundreds of addresses. He published multiple Ethereum and Tron hot wallet addresses tied to the investigation.
The largest traced outflows, according to ZachXBT, went to Cobo-linked deposit addresses. He said he traced more than $93 million in outflows from consolidations to multiple deposit addresses between April 27 and May 3, with Cobo receiving $63 million in total. He also performed timing analysis to identify withdrawals, located Solana and Tron deposits to Binance, found matching Tron withdrawals, and provided those details to relevant parties.
That work, he said, led to $38.4 million being frozen by Tether on May 4, with more than $3.1 million additionally frozen at various services and exchanges.
ZachXBT framed the case as less technically complex than many crypto crime investigations, but still significant because of the scale of victims and the speed of the laundering attempt. “While these Chinese investment frauds are obvious to most, they purposely target unsophisticated retail investors via social media,” he wrote. “Reading through victim posts, many still seem to be in denial that they were scammed.”
He advised victims of BG or DSJ to file police reports in their own jurisdictions, and directed US victims to IC3.gov. ZachXBT also cautioned that the $150 million estimate may understate the real damage, saying the figure is “likely significantly higher” because the scheme had been operating since 2025 and thousands of victim exchange withdrawals had been identified.
At press time, the total crypto market cap stood at $2.68 trillion.
Featured image created with DALL.E, chart from TradingView.com
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