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- Over $150M lost in a crypto Ponzi scheme targeting retail investors.
- Investigators traced funds across blockchains, freezing $41M+.
- Losses may rise as more victims and transactions are uncovered.
A large-scale crypto Ponzi scheme operating under the names DSJ Exchange and BG Wealth Sharing has collapsed, leaving estimated losses exceeding $150 million, according to blockchain investigator ZachXBT. The operation, active since 2025, reportedly drew in thousands of retail investors before unraveling, highlighting ongoing risks in the digital asset space.
How Investigators Tracked the Funds
The scheme came to light during a separate investigation, when ZachXBT noticed unusual activity linked to USDD contract flows. By following transaction patterns across multiple blockchains, including Tron and Solana, he identified how funds were consolidated and moved.
More than $92 million was transferred between April 27 and May 3 in what appeared to be an effort to obscure the money trail. A significant portion—around $63 million—was routed through wallets tied to Cobo on the Tron network.
Through timing analysis, deposit addresses were linked to accounts on major exchanges such as Binance. The findings were quickly shared with industry players and authorities, triggering a coordinated response.
Swift Action Freezes Millions
Collaboration between investigators, exchanges, and law enforcement led to rapid asset freezes. On May 4, Tether immobilized $38.4 million tied to the scheme. Additional actions across platforms, including OKX, brought the total frozen amount to over $41.5 million.
ZachXBT noted that the speed of coordination was critical in limiting further losses. However, a substantial portion of funds remains unaccounted for, and recovery prospects for victims are uncertain.
Retail Investors Bore the Brunt
The scheme primarily targeted inexperienced investors, using social media to promote seemingly simple investment opportunities. According to ZachXBT, the structure was basic enough that seasoned crypto users might have identified warning signs early.
Yet many victims were unfamiliar with common fraud tactics. Reports suggest that some affected individuals still struggle to accept the losses, underscoring the psychological dimension of such scams.
Authorities are urging victims to report incidents to local law enforcement. In the United States, cases can be filed through the FBI’s Internet Crime Complaint Center.
While current estimates place losses above $150 million, the true figure could be significantly higher. The scheme operated for over a year, with thousands of transactions linked to victim withdrawals already identified.
Also Read: Worldcoin Scandal? ZachXBT Compares Sam Altman’s Crypto to FTX Collapse
ZachXBT, who typically focuses on complex exploits, described this case as an unusual detour—one uncovered by chance rather than targeted investigation.
The collapse of DSJ Exchange and BG Wealth Sharing underscores the persistent threat of crypto Ponzi schemes, particularly for retail investors. Despite improved tracking tools and faster industry coordination, prevention remains the most effective defense. As the ecosystem grows, education and vigilance will be key to reducing the human cost of such frauds.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
