A crypto Ponzi scheme operating under the names DSJ Exchange and BG Wealth Sharing collapsed last week, with chain researcher ZachXBT estimating the total loss at over $150 million. The system has been active since 2025 and brought together thousands of victims before defecting.
Between April 27 and May 3, users moved more than $92 million in illegal currency across multiple blockchain networks in an attempt to hide the process. About $63 million of the funds went to the Cobo operator through four known wallet addresses on the Tron network.
How Money Went
ZachXBT said the case came to him when he was reviewing the USDD contract to investigate irregularities. After discovering the integration process, they tracked the output from Solana and Tron, matched deposit addresses to Binance accounts through time analysis, and reported the findings to exchanges, regulatory compliance, and stablecoin providers.
The relationship went quickly. On May 4, Tether suspended $38.4 million in funds linked to the system. Another $3.1 million was frozen in other platforms, bringing the total to $41.5 million. ZachXBT said it worked directly with Tether, Binance’s security team, OKX, and US law enforcement throughout the process.
Who chased him
ZachXBT described the scheme as a Chinese financial scam designed to target underperforming sellers through social media. The system was straightforward enough that experienced crypto users could figure it out quickly, but the operators relied on reaching people who were not familiar with how these schemes worked.
Reading victims’ accounts on Reddit after publishing their findings, ZachXBT said many affected users still denied being scammed. He encouraged anyone affected to file a police report in their area, directing US victims to the FBI’s Internet Crime Complaint Center at ic3.gov.
The $150 million figure, he added, may be too low. The system has been in operation for more than a year and thousands of people who have been removed from the exchange have been identified, which means that the actual losses may be much higher when the whole picture is revealed.
Commentary on Research
ZachXBT said that Ponzi scheme investigations are not criminal cases that they pursue, explaining that they do not have the problems of hacks and exploits that they focus on. The repetitive nature of the work means they rarely take them. This was different, it happened by accident while he was working on another job.
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