On-chain cryptocurrency investigator ZachXBT said the DSJ Exchange, also known as DSJEX, and the BG Wealth Sharing Ponzi scheme collapsed last week after attracting more than $150 million. The case now carries a second market-related dimension: a rapid cross-chain laundering attempt that moved more than $92 million in less than a week and led to a coordinated freeze of more than $41.5 million.
ZackXBT He said He helped lead an initiative involving Tether, Binance’s security team, OKX, and US law enforcement authorities after tracking the movement of funds between April 27 and May 3. According to his account, illicit actors attempted to hide the money trail across multiple chains before a portion of the assets was frozen.
“The $150 million DSJ Exchange (DSJEX)/BG Wealth Sharing Ponzi scheme collapsed last week,” ZachXBT wrote on X. “From April 27 to May 3, illicit actors laundered over $92 million across chains to cover the trail. I helped lead an initiative with Tether, the Binance Security Team, OKX, and US law enforcement that has since frozen over 41.5 million US dollars.”
Cryptocurrency worth $150 million collapses after regulators warn investors
According to ZachXBT, DSJ and BG have been operating since 2025, promoting daily returns of 1.3% to 2.6% along with referral commissions and rating-based bonuses. He described DSJ as a fake trading platform and BG as the investment group linked to the scheme. The alleged CEO, Stephen Baird, allegedly led the operation, while domains and hot wallets were regularly rotated in an apparent attempt to evade enforcement.
ZachXBT said the cryptocurrency scheme’s recruiting engine was built around social channels rather than sophisticated DeFi mechanisms. Fake trading signals were allegedly sent via a group on BonChat, a messaging app in Hong Kong. Dehek and BehindMLM were credited with early coverage of the investment fraud.
Regulatory warnings had already been accumulating before the collapse. ZachXBT said 13 regulators on five continents have publicly warned about DSJ and BG, while US law enforcement seized a BG-related domain, Bgwealthsharing.com, on April 23, 2026.
The collapse appears to have followed a Fashionable Ponzi pattern: Withdrawals were disabled, then users were asked for more money. On May 2, ZachXBT said Beard posted a video claiming that DSJ would soon seek an IPO and demanded a 12% “tax” on account balances as part of a supposed regulatory push.
“By this point, withdrawals have already been disabled,” ZachXBT wrote.
The money laundering trail, as described by ZachXBT, moved through several routes. Funds from DSJ and BG hot wallets were allegedly processed through Tokenlon swaps, Bridgers, Butter Network, USDT0 bridge, USDD wrapping and unwrapping, and consolidation across hundreds of addresses. He posted several hot Ethereum and Tron wallet addresses linked to the investigation.
The largest outflows tracked, according to ZachXBT, went to deposit addresses linked to Cobo. It said it tracked more than $93 million in outflows from the mergers to multiple deposit addresses between April 27 and May 3, with Kobo receiving $63 million in total. He also performed timing analysis to identify withdrawals, located Solana and Tron deposits on Binance, found matching Tron withdrawals, and provided these details to the relevant parties.
He said this action led to the freezing of $38.4 million by Tether on May 4, in addition to the freezing of more than $3.1 million on various services and exchanges.
ZachXBT portrayed the case as less technically complex than many cryptocurrency crime investigations, but still significant given the volume of victims and the speed of the money laundering attempt. “While these Chinese investment fraud “It is obvious to most people that they are deliberately targeting unsophisticated retail investors via social media,” he wrote. “Reading the victims’ posts, it appears that many are still in denial about being scammed.”
He advised victims of BG or DSJ to file police reports in their jurisdictions, and directed American victims to IC3.gov. ZachXBT also warned that the $150 million estimate may underestimate the true damage, saying the number is “likely much higher” because the scheme has been running since 2025 and thousands of victim exchange withdrawals have been identified.
At the time of publication, the total market cap of cryptocurrencies was $2.68 trillion.
Featured image created with DALL.E, a chart from TradingView.com
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