On-chain detective ZachXBT has detailed a massive crypto Ponzi scheme that defrauded victims of over $150 million before collapsing last week.
The scheme, operating since 2025 under the fake trading platform DSJ Exchange and fraudulent investment scheme BG Wealth, was fronted by a self-proclaimed professor and fake CEO named Stephen Beard. The operators promised daily returns of 1.3% to 2.6%, referral commissions, and rank-based bonuses to lure investors.
Thirteen regulators across five continents had issued public fraud warnings. On April 23, US law enforcement seized one of BG Wealth’s domains. When withdrawals were disabled, Beard demanded a 12% 'tax' from account holders as a prerequisite for an alleged going-public process.
Investigators traced millions in outflows, leading Tether to freeze $38.4 million on May 4, with an additional $3.1 million frozen by crypto exchanges, bringing the total to $41.5 million. The true scope of the scam is likely larger, as the scheme had been operating since 2025 with thousands of victim withdrawals identified.
