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 more 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 across multiple blockchains in an attempt to obscure transaction trails, with approximately $63 million routed to the custody provider Cobo. Assistance was provided by ZachXBT to Tether, Binance’s security team, OKX, and US law enforcement, resulting in more than $41.5 million in assets being frozen to date.

According to ZachXBT, the scheme, which was said to have operated since 2025, allegedly promoted daily returns ranging from 1.3% to 2.6%, alongside referral incentives and rank-based bonus structures. DSJ was described as a fabricated trading platform, while BG functioned as a purported investment group. A fictional executive identified as “Stephen Beard” was used as the public-facing representative, while domains and hot wallet addresses were frequently rotated to avoid enforcement action.

Recruitment activity and trading-related signals were reportedly distributed through a BonChat group, a messaging application commonly used in Hong Kong. Early coverage of the case was attributed to investigative journalist Danny de Hek and BehindMLM. In total, thirteen regulators across five continents had previously issued public warnings regarding DSJ and BG.

US law enforcement reportedly seized the domain Bgwealthsharing[.]com on April 23, 2026. Shortly after, on May 2, a video attributed to “Stephen Beard” claimed that DSJ would pursue an initial public offering and introduced a 12% “tax” on account balances framed as part of a regulatory process, despite withdrawals already being disabled at that point.

Investigators Track $93M In Flows And Freezes Amid Ongoing Enforcement Actions

Following the collapse, funds from DSJ and BG-linked wallets were allegedly routed through multiple obfuscation methods, including Tokenlon swaps, cross-chain bridging via Bridgers, Butter Network, and USDT0, as well as wrapping and unwrapping of USDD, before being consolidated across hundreds of addresses.

The investigator reported that analytical tracking identified more than $93 million in outgoing flows between April 27 and May 3, 2026, with significant portions directed to centralized platforms. Around $63 million was associated with Cobo-linked addresses, while approximately $30 million was linked to OKX address. Further tracing included timing analysis of withdrawals, identifying deposits across Solana and Tron networks routed to exchanges such as Binance, with corresponding withdrawal patterns shared with relevant parties.

As a result of coordinated enforcement activity, approximately $38.4 million was frozen by Tether on May 4, with an additional $3.1 million frozen across other services and exchanges.

The analyst highlighted that the scheme was targeting retail investors through social media channels, often appealing to less experienced participants. Despite mounting evidence, some affected users reportedly continued to dispute the fraudulent nature of the operation. The total scale of losses is considered potentially higher than initial estimates, given that the scheme is believed to have been active since 2025, with a large number of victim-related withdrawals already observed across exchanges.

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