U.S. federal law enforcement has taken control of the BG Wealth Sharing website after investigators tied the platform to a suspected crypto investment scam that left victims with heavy losses. On-chain sleuth ZachXBT tracked wallets linked to the operation attempting to move more than $92 million in crypto between April 27 and May 3. A coordinated freeze involving Tether, Binance, OKX, and U.S. authorities locked over $41 million.
Scope of the Fraud Revealed by Blockchain Data
ZachXBT estimated total losses could exceed $150 million, citing on-chain activity traced back to 2025 and thousands of identified victim exchange withdrawals. He noted the group targeted retail users via social media, luring them with promises of high returns despite clear warning signs. FBI data released in April showed cyber-enabled crimes caused $21 billion in losses last year, with crypto investment scams accounting for a significant share.
Platform Tactics and Regulatory Warnings
BG Wealth Sharing marketed itself as a crypto trading service offering daily returns of 1.3% to 2.6%, plus referral bonuses and rank-based rewards. In April, the Central Bank of Samoa flagged it as an unlicensed investment scam. Days before the shutdown, a person identified as CEO Stephen Beard told users via video that the platform's DSJ Exchange was preparing an IPO and required a 12% tax on account balances to proceed. Soon after, users reported withdrawal restrictions; by Monday, the Washington State Department of Financial Institutions warned that any platform demanding additional deposits before allowing withdrawals was highly likely running an advance fee scam.
Enforcement and Broader Context
The domain seizure is part of Operation Level Up and the Scam Center Strike Force. Last month, the U.S. Department of Justice announced a crackdown on pig butchering scams led by the FBI, resulting in 276 arrests and the closure of fraud hubs in Dubai, Thailand, and China. Victims were convinced to deposit funds into fake crypto platforms, which then routed assets through wallet networks for laundering. ZachXBT's analysis showed the BG Wealth Sharing scheme followed a similar pattern. Regulators advise investors to steer clear of platforms promising extraordinary returns with added fees, and to report suspicious activity to local financial authorities immediately.