ZachXBT says $150 million DSJ Ponzi scheme collapsed, with $92 million laundered cross-chain and $41.5 million frozen

On-chain investigator ZachXBT announced on X on May 5, 2026, that a crypto investment scheme operating under the names DSJ Exchange, or DSJEX, and BG Wealth Sharing has collapsed after drawing in more than $150 million, while about $92 million was moved across blockchains in an apparent effort to obscure the trail.

ZachXBT said he worked with Tether, Binance’s security team, OKX and U.S. law enforcement to help freeze about $41.5 million in assets linked to the alleged fraud, including $38.4 million frozen by Tether on May 4 and roughly $3.1 million frozen by other platforms.

The scheme, which ZachXBT said began operating in 2025, reportedly promised daily returns of 1.3% to 2.6% and used referral commissions and tiered rewards to attract investors. He described DSJ as a fake trading platform and BG as an affiliated investment organization, and said a purported executive named “Stephen Beard” was fictional.

According to the investigator’s account, the operators rotated domains and hot wallets frequently to avoid detection and used messaging apps to distribute fake trading signals. Reports also said withdrawals were suspended before the collapse, and users were later asked to pay a 12% “tax” under the pretext of an imminent initial public offering.

The money trail, ZachXBT said, included rapid movement across bridges and swap services between April 27 and May 3. In one report, roughly $63 million of the funds was routed to the custody provider Cobo, though the significance of those flows was not immediately clear.

The collapse adds to mounting concern over high-yield crypto schemes that promise outsized returns while disguising risk. ZachXBT said several regulators had already warned about the operation before it fell apart, and that U.S. authorities seized a domain tied to BG Wealth Sharing in late April 5.

He also urged victims to file police reports in their local jurisdictions and, for U.S. victims, to contact the FBI’s Internet Crime Complaint Center. The investigator said the $150 million figure may understate the size of the scheme and that the true damage could be much larger.

Crypto fraud has remained a persistent problem despite tighter scrutiny from exchanges and law enforcement. The latest case underscores how quickly illicit funds can be moved across chains and how difficult recovery can be without coordination among platforms, stablecoin issuers and police.

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