$150M crypto Ponzi scheme collapses as ZachXBT tracks $92M laundering and helps freeze $41.5M with global exchanges and authorities
A major crypto fraud shocked investors as a large Ponzi scheme suddenly collapsed. The fraud was not only over 150 million dollars but also involved thousands of individuals. Nevertheless, timely intervention by ZachXBT and others allowed to freeze millions of dollars and slow down the losses.
$150M Ponzi Scheme Collapse Triggers Global Action
The scheme was run under DSJ Exchange and BG Wealth Sharing over months. It guaranteed a daily return of 1.3 to 2.6%, which appealed to a large number of users. Nevertheless, these consistent high returns are often indicative of a Ponzi scheme, in which initial investors are paid with new deposits.
2/ DSJ / BG has been running since 2025, advertising 1.3% – 2.6% daily returns with referral commissions and rank-based bonuses.
DSJ = fake trading platform
BG = investment groupA fictitious CEO named Stephen Beard fronted the platform, while domains and hot wallets rotated… pic.twitter.com/ve1XiiCFql
— ZachXBT (@zachxbt) May 5, 2026
The site capitalized on false trading statements and referral bonuses to expand rapidly. It even made a counterfeit CEO called Stephen Beard to look real. In the meantime, the team advertised its services via BonChat, a messaging application popular in Hong Kong.
Reading more: ZachXBT Names Tokenlon in Major Crypto Crime Allegations – Ledger Tribune
It is reported that the scheme began in 2025 and expanded at a very fast rate. In the long run, at least 13 regulators in 5 continents issued warnings. Besides that, on April 23, 2026, the U.S. law enforcement seized one of the domains of the platform.
However, the scam continued operating despite warnings. On May 2, a video alleged that the company was about to issue an IPO. Meanwhile, users were required to pay a 12% tax. At this point, the withdrawals had already ceased and this was a matter of concern.
$92M Laundered as Investigators Track Crypto Movements
Between April 27 and May 3, more than $92 million was moved across blockchains. This is referred to as laundering which was used to conceal the origin of money. To make tracking difficult, criminals employed various techniques, such as token swaps and cross-chain bridges.
The money was laundered via exchanges such as Cobo, and approximately 63 million dollars were sent to Cobo. Also, assets were wrapped and unwrapped, particularly with USDD tokens, to further conceal activity.
Despite these efforts, ZachXBT tracked over $93 million in suspicious outflows. Through the analysis of timing patterns, deposits, and withdrawals, he connected transactions between blockchains such as Solana and Tron.
This close tracking was used to determine similar deposits and withdrawals on exchanges. Consequently, significant data was exchanged with major businesses and government. These included Tether, Binance, OKX, and U.S. law enforcement.
Thanks to this effort, about $38.4 million was frozen by Tether on May 4. In addition, an extra $3.1 million was censored on various platforms. Overall, more than 41.5 million has been raised to date.
This is a good reaction, but still a lot of it cannot be explained. Experts believe total losses could be much higher than $150 million. The reason is that the scheme lasted more than a year and had numerous victims.
A large number of victims were ordinary investors who believed in the social media promotions. Unfortunately, there are still people who think that the platform is not a fraud and they hope to get money back.
This case demonstrates how fast crypto scams may develop and become widespread all over the world. Nevertheless, it also emphasizes the role of blockchain tracking in recovering money. As the investigations are ongoing, additional funds might be frozen and additional information might be revealed.