- Investment activity related to BG Wealth Sharing and DSJ Exchange (DSJ) crashed after $92 million was moved through the blockchain network between April 27 and May 3.
- According to ZachXBT, more than $41.5 million was closed due to cooperation with Tether, Binance Security Team, OKX, and the US police.
- At least 13 regulators around the world, including the Alberta Securities Commission (ASC), Washington State’s Department of Financial Institutions (DFI), and the UK’s Financial Conduct Authority (FCA), have issued warnings before the crash.
On May 5th, ZachXBT, a well-known researcher on the chain, shared in detail on X (formerly Twitter) how he contributed to the demolition. BG Wealth Sharing Ponzi schemewhich fell last week.
Last week, the largest cryptocurrency investment plan managed by BG Wealth Sharing and its trading platform DSJ Exchange (also known as DSJEX). Today, ZachXBT officially announced the collapse of the ponzi sharing scheme.
This comes after months of warnings from financial regulators around the world.
BG Wealth, DSJEX Scam Nets $150 Million.
According to the official website, BG Wealth is named as an investment group and is said to be the world’s largest hedge fund. The platform has promised to bring more money through cryptocurrency trading on the DSJ Exchange platform.
Participants were asked to deposit money, mainly USDT, which is a digital currency called Tether. They were then provided with daily business information via private apps such as BonChat, Telegram, or WhatsApp. The platform has shown fake profits on user accounts to build trust with users.
However, the system relied on recruitment, where former members were forced to bring in new investors by promising them referral bonuses and various rewards.
How The System Worked And Why Regulators Got Into The Story
In the past few months, regulators have been issuing warnings about the Ponzi scheme being used by BG Wealth Sharing and its trading platform DSJ Exchange, saying it has false guarantees. The platform was claiming that money could double very quickly with what it called zero risk. The scheme used multiple areas of the website that were constantly changing to avoid detection.
As a matter of fact, neither BG Wealth Sharing nor DSJ Exchange is registered to conduct their services, including financial or trading services, in any of the jurisdictions that have provided information.
In February, the Alberta Securities Commission (ASC) issued a warning to the public in this regard. The committee noted that the scheme uses AI indicators and incentives for employers. It also confirmed that the project was not registered in Alberta.
Washington State’s Department of Financial Institutions (DFI) added a Ponzi scheme to its Investment Scam Tracker in April 2026. On May 4, the DFI updated its alert to reflect complaints of prepaid investment fraud.
In this type of scam, the platform was asking users for extra money in the name of taxes or fees to get their money.
Similar notices were issued by other regulators in various jurisdictions, such as Utah, the United Kingdom’s Financial Conduct Authority, New Zealand, Tonga, Smoa, the Philippines, and others. In total, 13 different notifications were issued in many countries. All of these warnings were alleging that the entities had falsely claimed to have SEC approval or approval. To make their platform look legitimate, they will also create fake posts.
ZachXBT Helps in Research to Stop Money
According to ZachXBT, the attack fell through April 27 and May 32026, after the platform has stopped extracting completely. After that, the operator of the platform has started demanding more money from the users.
“On May 2, Stephen Beard sent a video saying that DSJ will be an IPO soon and demanded a 12% “tax” on bank accounts as part of the management process. At this time, the withdrawal had already failed,” ZachXBT said in a post on X.
This is a similar pattern seen in many exits gossip. Between April 27 and May 3, more than $92 million was moved across various blockchain networks. According to ZachXBT, investigators were trying to hide where the money was going.
ZachXBT is working with many partners to prevent further losses. This includes Tether, Binance Security Team, OKX, and United States law enforcement. In this joint venture, they have managed to freeze more than $41.5 million. This cooperation between crypto exchanges and authorities is being hailed as a good way to reduce the damage caused by massive fraud.
According to the government, the total cost of the project was about $150 million. Not only this, various other experts have said that most of the money is managed by the addresses associated with them. In this Ponzi scheme, users were targeted through social networks and special groups. This scam has affected many people across the world, including India and other regions.
Crypto Sector Shaken Through Hacks and Scams
Although the crypto sector is growing due to crowdfunding and clear regulatory frameworks, it is still struggling to protect them from cyber threats and slander. Over the past few months, crypto users have lost millions of dollars in mysterious hacks and scams.
In April, Mr Kelp DAO The bridge was damaged in a North Korean cyber attack and cost $292 million, making it one of the biggest losses of the year.
This action has shaken the entire DeFi sector as many altcoins, such as SPIRIThe fell hard. For a short period of time, this has created uncertainty in the DeFi sector as investors begin to withdraw their funds. However, AAVE has launched DeFi United and a group of DeFi platforms to acquire bad debt in the $292 million Kelp DAO.
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