The crypto community was hit hard by the collapse of the DSJ Exchange (DSJEX) and BG Wealth Sharing Ponzi scheme, which siphoned over $150 million from victims. On-chain detective ZachXBT released a detailed report revealing how the fraud group laundered more than $92 million after halting withdrawals last week. Through precise tracking and urgent collaboration with Tether, Binance, OKX, and U.S. law enforcement, over $41.5 million in stolen funds were frozen.
Daily Returns Up to 2.6%: Fake CEO Demanded 12% "Tax" Before Exit
According to ZachXBT, DSJ and BG operated since 2025, recruiting retail investors via Hong Kong's BonChat groups with promises of 1.3% to 2.6% daily returns and multi-level referral commissions. To boost credibility, they hired a fictional CEO named "Stephen Beard" and frequently changed domains and hot wallets to evade detection. Regulators across five continents and 13 jurisdictions issued scam warnings; U.S. authorities seized some domains on April 23. In an absurd twist, after withdrawals were disabled, the fake CEO posted a video on May 2 claiming DSJ was about to "IPO" and demanded investors pay a 12% "tax" on their account balances to comply with regulatory procedures — a classic "second harvest" trick before exit.
Laundering $92M: ZachXBT Stumbles Upon Irregularities
Sensing exposure, the group began frantic money laundering. Between April 27 and May 3, they moved funds through Tokenlon, Bridgers, Butter Network cross-chain bridges, and USDT wrapping/unwrapping, laundering over $92 million. The money flowed to multiple deposit addresses: approximately $63 million went to digital asset custodian Cobo, and another $30 million to exchange OKX. ZachXBT said he rarely investigates Ponzi schemes (due to low technical difficulty and repetitive work), but this time he accidentally spotted abnormal fund flows while reviewing a USDD smart contract for another case.
Joint Action: Tether Freezes $38.4M USDT, Exchanges Freeze $3.1M
After identifying fund destinations, ZachXBT performed timeline analysis, matching withdrawal records with on-chain deposits to Binance on Solana and Tron, then submitted evidence to relevant entities. The operation yielded significant results: Tether froze $38.4 million USDT on May 4; exchanges and services jointly froze over $3.1 million. Total frozen: over $41.5 million. ZachXBT warned that despite the crude tactics, these scams target inexperienced retail investors, and many victims remain in denial. He urged DSJ/BG victims to report to local police immediately, noting the $150 million estimate is likely just the tip of the iceberg.