On-chain investigator ZachXBT played a central role in freezing more than $41.5 million following the collapse of a massive cryptocurrency Ponzi scheme that defrauded victims of at least $150 million. The scheme operated under the names DSJ Exchange (DSJEX) and BG Wealth Sharing, having started in 2025 and promised investors daily returns of 1.3% to 2.6%, along with referral and ranking bonuses.
Between April 27 and May 3, 2026, the operators laundered over $92 million across multiple blockchains, including Tron, Solana, and others, using token swaps, bridges, and consolidations to obscure the money trail. Approximately $63 million of these funds ended up in wallet addresses controlled by custody provider Cobo on the Tron network.
ZachXBT discovered the scheme while reviewing USDD contract flows during an unrelated investigation. By conducting timing analyses, he linked deposit addresses to Binance accounts and traced outflows on Solana and Tron. He then shared the findings with Tether, the Binance security team, OKX, and US law enforcement. On May 4, 2026, Tether froze $38.4 million in USDT linked to the scam, while another $3.1 million was immobilized across other platforms, bringing the total frozen to over $41.5 million.
The scheme specifically targeted unsophisticated retail investors through social media channels, using a fake CEO named Stephen Beard, constantly rotating domain names and hot wallets, and a messaging app called BonChat. Even after US authorities seized one of their domains on April 23, the scam continued until withdrawals were completely blocked in early May. ZachXBT noted that many victims remained in denial after the collapse and urged them to report the crime to local authorities and the FBI. The true total losses are believed to be significantly higher than $150 million, given the thousands of victim withdrawals identified over more than a year of operation. Early coverage by researchers dehek and BehindMLM had already flagged the fraud before its collapse.
