DSJ Exchange and BG Wealth Sharing Ponzi Collapses After $150 Million From Victims, $41.5M Frozen

A crypto Ponzi scheme operating under the names DSJ Exchange (DSJEX) and BG Wealth Sharing collapsed after taking more than $150 million from victims, according to on-chain investigator ZachXBT. Between April 27 and May 3, illicit actors laundered more than $92 million across multiple blockchains, while more than $41.5 million was frozen with the cooperation of Tether, Binance, OKX and US law enforcement authorities. The scheme promoted daily returns of 1.3% to 2.6% and used a fictitious CEO named Stephen Beard as the public-facing representative, with domains and hot wallets rotating to evade enforcement. On May 4, Tether froze $38.4 million in USDT on TRON after tracing deposits to Binance and matching them with TRON withdrawals, and an additional $3.1 million was frozen at various services and exchanges.

“- Marvin Favis, a crypto content creator, exposed a scam on Raffy Tulfo in Action, revealing losses of approximately ₱72 million affecting him and other investors”

BitPinas

Before the collapse, regulators warned investors about BG Wealth Sharing and its links to DSJ Exchange, including the Central Bank of Samoa warning in April and the Washington State Department of Financial Institutions issuing a similar warning after receiving complaints. Cointelegraph reported that a Washington regulator said, “A company that requires an investor to deposit additional external funds in order to withdraw their investment is highly likely to be operating an advance fee scam.” In a video to users, purported CEO Stephen Beard told them DSJ Exchange was on the cusp of an initial public offering and demanded a 12% “tax” on account balances as part of the regulatory process. By Sunday, users posted warnings on social media that the whole operation was a rug pull in progress, and on Monday the formal regulatory alert arrived alongside a domain seizure notice by US law enforcement.

ZachXBT said the $150 million figure is “likely significantly higher since the scheme has been operating since 2025,” and he advised victims of DSJEX and BG Wealth’s scheme to file a police report in their jurisdiction to aid global investigations and potential restitution. The TradingView report also described how the scammers laundered funds through token swaps, bridging via Bridgers, Butter Network, and USDT0, and wrapping and unwrapping of USDD before consolidating across hundreds of addresses. It further stated that the on-chain detective traced the millions in outflows through timing analysis, located Solana/Tron deposits to Binance, and found matching Tron withdrawals. Even with the freezes, the Cointelegraph account said, “For victims, however, a freeze does not automatically mean recovery,” framing the immediate effect as preventing blacklisted funds from moving while service providers and law enforcement continue their review.

“Table of Contents The DSJ Exchange (DSJEX) and BG Wealth Sharing Ponzi scheme collapsed last week after accumulating over $150 million from victims”

Blockonomi