2026 isn’t even halfway through, yet illicit actors show no signs of slowing. On the 5th of May, pseudonymous blockchain investigator ZachXBT revealed that DSJ Exchange (DSJEX) and BG Wealth Sharing had operated as a Ponzi scheme since launch.
Why did the DSJ exchange collapse?
According to the investigation, between the 27th of April and the 3rd of May, perpetrators used disguised wallets to steal over $92 million worth of assets.
The laundering process relied on token swaps, bridging through platforms like Bridgers, Butter Network, and USDT0, wrapping and unwrapping USDD, and consolidating transactions across hundreds of addresses. These layered methods obscured the trail of funds and complicated recovery efforts.
ZachXBT noted,
While these Chinese investment frauds are obvious to most, they purposely target unsophisticated retail investors via social media.
Along with Tether, the Binance [BNB] security team, and U.S. law enforcement, ZachXBT also assisted in leading an investigation into this incident. As a result, Tether froze $38.4 million on the 4th of May, and an additional $3.1 million was frozen at different cryptocurrency services and exchanges.
Were DSJEX and BG Wealth Sharing fraudulent from the start?
Well, the platform has been running since 2025, offering 1.3% to 2.6% daily returns along with rank-based bonuses and referral commissions.
To avoid detection by law enforcement, the phony CEO Stephen Beard ran the Ponzi scheme by frequently rotating domains and hot wallets. So far, thirteen regulators from five continents have publicly warned about DSJ & BG’s fraud.
One of the BG domains, Bgwealthsharing[.]com, was taken over by U.S. law enforcement on the 23rd of March, 2026. As part of the regulatory process, the phony CEO demanded a 12% “withdrawal tax” on account balances in a video posted on the 2nd of May, claiming DSJ would soon go public.
However, ZachXBT pointed out that
By this point, withdrawals had already been disabled.
Final Summary
- ZachXBT helped lead an investigation into this incident, which resulted in a freeze of more than $41.5 million.
- Stephen Beard, the fake CEO, devised this Pozini scheme, which involved frequent domain and hot wallet rotation.
