Stablecoin issuer Tether, in collaboration with Binance, OKX, U.S. law enforcement, and independent security agents, has frozen over $41.5 million linked to the collapsed DSJ Exchange and BG Wealth Sharing Ponzi scheme. On-chain investigator ZachXBT disclosed the operation in a series of posts on X, detailing how the fraud scheme amassed an estimated $150 million before its collapse last week.
According to ZachXBT, illicit actors laundered more than $92 million across multiple blockchains between April 27 and May 3, using cross-chain swaps and sophisticated wallet movements to obscure the trail. Tether alone froze $38.4 million in USDT on the TRON network by blacklisting 19 addresses in a single transaction. The remaining funds were frozen on other platforms, bringing the total secured amount to over $41.5 million.
The operation was triggered by a timing analysis and cross-chain tracking performed by ZachXBT, who later coordinated with exchanges and authorities to halt the movement of stolen assets. Several regulators had previously warned investors about BG Wealth Sharing’s fake licensing claims and unsustainable returns, but the scheme continued until it unraveled simultaneously with the DSJ Exchange downfall. The freeze marks one of the largest recent recoveries of funds from a crypto-based investment fraud.
