On-chain investigator ZachXBT helped freeze $41.5 million in funds tied to a collapsed crypto Ponzi scheme operating under the names DSJ Exchange and BG Wealth Sharing. The scheme, which ran since 2025 and ensnared thousands of victims, saw total losses exceed $150 million, according to ZachXBT's initial estimate.
Money Trail: Over $92M Moved Across Chains
Between April 27 and May 3, operators shifted more than $92 million in illicit funds across multiple blockchain networks in a bid to obscure the trail. Roughly $63 million flowed to custody provider Cobo via four identified wallet addresses on the Tron network. Funds were shuffled between Solana and Tron, with deposit addresses linked to Binance accounts through timing analysis.
How ZachXBT Tracked the Funds
ZachXBT said he stumbled upon the consolidation pattern while reviewing USDD contract flows for an unrelated case. He traced outflows across Solana and Tron, matched deposit addresses to Binance accounts via timing analysis, and shared findings with exchanges, law enforcement, and stablecoin issuers.
Action came swiftly. On May 4, Tether froze $38.4 million in connected funds; another $3.1 million was frozen on other platforms, bringing the total immobilized to over $41.5 million. ZachXBT said he worked directly with Tether, Binance's security team, OKX, and US law enforcement.
Victims Targeted via Chinese Social Media
ZachXBT described the scheme as a Chinese-language investment fraud deliberately targeting unsophisticated retail investors through social media. The mechanics were straightforward enough for experienced crypto users to spot, but operators relied on reaching people with limited familiarity with such scams.
After publishing his findings, ZachXBT noted on Reddit that many affected users were still in denial. He urged victims to file police reports locally, directing US victims to the FBI's Internet Crime Complaint Center at ic3.gov.
The $150 million figure is likely a significant underestimate, he added. The scheme ran for well over a year, and thousands of victim exchange withdrawals have been identified, suggesting actual losses could be much higher once the full picture emerges.
A Note on the Investigation
ZachXBT said Ponzi scheme investigations are not his typical focus, as they lack the complexity of hacks and exploits he usually analyzes. The repetitive nature means he rarely takes them on. This one was an exception, caught by chance while working on something else entirely.