Authorities Seize $41M in Assets From Alleged $150M Cryptocurrency Pyramid Scheme
Law enforcement officials have successfully frozen over $41 million in assets tied to an alleged $150 million cryptocurrency pyramid scheme operated by BG Wealth Sharing and DSJ Exchange, after multiple regulatory bodies issued warnings about the unlicensed operation being a potential fraud.
BG Wealth Sharing, an investment platform believed to be operating a $150 million cryptocurrency pyramid scheme, has seen its website domain confiscated by law enforcement authorities just days following what appears to be a rug pull targeting its user base.
Blockchain investigator ZachXBT revealed on X this Tuesday that individuals with "illicit" ties to the operation attempted to launder in excess of $92 million worth of cryptocurrency assets from April 27 through Sunday, though he spearheaded an effort that successfully froze upwards of $41 million through collaboration with Tether, Binance, OKX and United States law enforcement agencies.
According to his assessment, the fraudulent operation likely caused damages exceeding $150 million, considering its operations have been ongoing since 2025 and the "thousands of victim exchange withdrawals identified" during the investigation.
"While these Chinese investment frauds are obvious to most, they purposely target unsophisticated retail investors via social media," ZachXBT added. "Reading through victim posts, many still seem to be in denial that they were scammed."
Data released by the US Federal Bureau of Investigation in April revealed that victims in America suffered losses totaling $21 billion from cyber-enabled criminal activities last year, with fraudulent cryptocurrency investment schemes representing a substantial portion of those financial losses.
BG Wealth Sharing domain seized by US law enforcement
By Wednesday, visitors to the BG Wealth Sharing website were greeted with a notification indicating the domain had been confiscated by United States law enforcement authorities through a collaborative effort involving Operation Level Up and the Scam Center Strike Force.
Multiple regulatory agencies had previously issued alerts stating that BG Wealth Sharing operated without proper licensing and recommended exercising caution starting in 2025. During April, the Central Bank of Samoa publicly identified the platform as an investment fraud scheme and urged investors to steer clear of the organization.
According to regulatory authorities, BG Wealth Sharing purported to offer expert guidance on cryptocurrency trading activities, maintained an aggressive social media advertising presence and promoted "daily profit opportunities," compensation for referrals, bonuses tied to membership ranks and daily returns ranging from 1.3% to 2.6%.
One last rug pull before going offline, users say
Prior to BG Wealth Sharing's platform going dark, the individual claiming to be CEO Stephen Beard addressed users through a video message on Saturday, informing them that DSJ Exchange was approaching an initial public offering and that regulatory compliance procedures necessitated a 12% levy on all account balances.
Come Sunday, affected users began posting alerts across social media platforms claiming the entire operation represented a rug pull actively in motion. The following Monday saw the Washington State Department of Financial Institutions publish a comparable advisory to the public.
In a revised statement expanding upon its previous communication regarding BG Wealth Sharing, the regulatory body disclosed it had received numerous complaints from affected investors and cautioned that the operation bore all the hallmarks of a fraudulent scheme.
"A company that requires an investor to deposit additional external funds in order to withdraw their investment is highly likely to be operating an advance fee scam."