ZachXBT Freezes ₱2.53 billion ($41.5 million) in ₱9.13 billion ($150 million) DSJ Exchange Ponzi Collapse
After the DSJ Exchange and BG Wealth Sharing Ponzi scheme collapsed, on-chain investigator ZachXBT coordinated a freeze of ₱2.53 billion ($41.5 million) in stolen funds. Scammers had operated the scheme since 2025, targeting unsophisticated retail investors through Chinese-language social media and the Hong Kong messaging app BonChat.
Key Takeaway
Cross-chain coordination between investigators and exchanges recovered 28% of stolen funds before scammers could cash out.
On-chain investigator ZachXBT helped freeze over ₱2.53 billion ($41.5 million) after the DSJ Exchange and BG Wealth Sharing Ponzi scheme collapsed last week.
The operation promised daily returns between 1.3% and 2.6% before imploding. From April 27 to May 3, scammers laundered over $92 million across multiple blockchains trying to obscure the trail. Tether froze $38.4 million on May 4, while various exchanges and services locked down another $3.1 million through a coordinated effort involving Binance Security Team, OKX, and US law enforcement.
US law enforcement had seized the Bgwealthsharing.com domain on April 23, days before the massive laundering attempt began. Stephen Beard, the alleged CEO who fronted the operation, posted a video on May 2 claiming DSJ would pursue an IPO and demanding a 12% "tax" on all account balances. Withdrawals had already been disabled by that point. Thirteen regulators across five continents had issued public warnings about DSJ and BG before the collapse.
The scheme deliberately targeted unsophisticated retail investors through Chinese-language social media channels and the Hong Kong messaging app BonChat, which pushed fake trading signals. Many victims remained in denial even after the collapse. The $150 million figure was likely much higher since the scheme had been operating since 2025 and thousands of victim exchange withdrawals had been identified.
Investigators traced $63 million in outflows to deposit addresses linked to Cobo custody. Scammers used multiple services including Tokenlon, Bridgers, Butter Network, and USDT0 to move funds across chains. Total traced outflows from consolidations hit $93 million between April 27 and May 3. ZachXBT urged US victims to file complaints at IC3.gov on May 7, 2026.
This article was written based on reporting from Bitcoinist.
