U.S. authorities have taken control of the BG Wealth Sharing website after investigators linked the group to a suspected crypto investment fraud that left users with heavy losses.
Summary
- U.S. authorities seized the BG Wealth Sharing domain after linking the platform to a suspected crypto investment scam.
- Onchain data traced by ZachXBT showed over $92 million in attempted transfers, with more than $41 million frozen through coordinated action.
- Regulators and users flagged blocked withdrawals and a 12% tax demand before the platform went offline, raising advance fee scam concerns.
According to on-chain investigator ZachXBT, wallets tied to the operation attempted to move more than $92 million in crypto between April 27 and May 3, while coordinated action involving Tether, Binance, OKX, and U.S. law enforcement resulted in over $41 million being frozen.
ZachXBT said the scheme may account for losses exceeding $150 million, citing activity traced back to 2025 and “thousands of victim exchange withdrawals” identified through on-chain analysis. He added that the operation targeted retail users through social media channels, where victims were encouraged to trust the platform despite warning signs.
Figures released by the Federal Bureau of Investigation in April showed that cyber-enabled crimes led to $21 billion in losses last year, with crypto investment scams forming a significant portion of the total.
As of Wednesday, the BG Wealth Sharing website displays a seizure notice issued as part of a joint enforcement effort involving Operation Level Up and the Scam Center Strike Force, confirming the domain has been taken over by U.S. authorities.
Regulatory alerts had already flagged the platform months earlier. In April, the Central Bank of Samoa described BG Wealth Sharing as an investment scam and advised the public to stay away, noting that the company operated without a license.
Authorities said the group promoted itself as a crypto trading service, offering daily returns between 1.3% and 2.6%, along with referral incentives and rank-based bonuses designed to attract new deposits.
In the days leading up to the shutdown, a person identified by users as CEO Stephen Beard told participants in a video message that the platform’s DSJ Exchange was preparing for an initial public offering and required a 12% tax on account balances to proceed.
By Sunday, users began posting warnings online that withdrawals were being restricted, with several claiming the platform had stopped processing requests. On Monday, the Washington State Department of Financial Institutions confirmed it had received complaints and warned that the operation showed signs of fraud.
The regulator stated that any platform requiring additional deposits before allowing withdrawals is “highly likely to be operating an advance fee scam,” reinforcing concerns raised by affected users.
Earlier enforcement actions have shown how such operations are structured. Last month, the U.S. Department of Justice said a Federal Bureau of Investigation-led crackdown on “pig butchering” scams led to 276 arrests and the shutdown of multiple fraud centers across Dubai, Thailand, and China, where victims were persuaded to send funds to fake crypto platforms before assets were routed through networks of wallets for laundering.
