BEARISH 📉 : Tether and exchanges freeze $41.5M as DSJEX Ponzi collapses amid US probe
ZachXBT exposes $150M DSJEX/BG Wealth Ponzi. Tether and exchanges freeze $41.5M.
On-chain sleuth ZachXBT detailed a long-running crypto Ponzi tied to fake exchange DSJEX and BG Wealth Sharing. He published the findings in a Tuesday X thread here.
The scheme promised 1.3%–2.6% daily returns. It paid referral commissions and rank bonuses. A fake CEO, “Stephen Beard,” pushed recruitment and trading signals via BonChat.
Washington’s DFI warned investors about the setup in an alert. BG Wealth and DSJ claimed SEC licenses. Regulators in five continents disputed this, including the UK FCA, Australia’s ASIC, the Philippines SEC, and Washington DFI.
On April 23, US law enforcement seized a BG Wealth domain. The operation involved Level Up and the Scam Center Strike Force. The scam ran about one more week per this report.
Last Saturday, Beard said DSJEX would go public. He demanded a 12% “tax” on balances. Withdrawals were already disabled.
After US involvement, scammers moved over $92M across chains. Funds were laundered via token swaps, bridging through Bridgers, Butter Network, and USDT0, wrapping and unwrapping USDD, and consolidating across hundreds of wallets. ZachXBT traced flows, including deposits on Solana and Tron to Binance, and matching Tron withdrawals. He then shared data with Tether, Binance security, OKX, and US authorities in his thread and coverage.
Tether froze $38.4M on May 4. Another $3.1M was frozen across services and exchanges. Total frozen: $41.5M per this report.
ZachXBT said losses likely exceed $150M. The scheme has run since 2025, with thousands of victim withdrawals identified in his post.
He urged victims to file police reports locally. That may support global investigations and restitution efforts.
Key points for investors:
- $150M taken since 2025 source
- Promised 1.3%–2.6% daily returns source
- 13 regulators issued warnings DFI alert
- Domain seized April 23; scam lingered ~1 week report
- >$92M laundered via cross-chain routes thread
- $41.5M frozen by Tether and exchanges report