DSJEX Ponzi Scheme Collapse: Involved Funds Exceed $150 million, with Approximately $41.5 million Frozen

BlockBeats News, May 5th. On-chain investigator ZachXBT revealed that the DSJ Exchange (DSJEX) and BG Wealth Sharing Ponzi schemes collapsed last week, involving a total of over $150 million. Between April 27th and May 3rd, funds were laundered through cross-chain transfers, amounting to over $92 million.

Working in collaboration with Tether, Binance security team, OKX, and U.S. law enforcement agencies, approximately $41.5 million has been frozen. This includes $38.4 million frozen by Tether and around $3.1 million frozen by other platforms.

The investigation showed that the project has been operating since 2025, attracting users with daily returns of 1.3%–2.6% and expanding through referral bonuses and ranking rewards. The platform fabricated a CEO named "Stephen Beard," frequently changed domains and hot wallets to evade regulations, and spread false trading signals through social media.

On May 2nd, the project team claimed they would have an IPO and requested users to pay a 12% "tax," but the withdrawal function was already disabled at that time. Funds were primarily dispersed through Tokenlon swaps, cross-chain bridges (Bridgers, Butter Network, USDT0), USDD wrapping/unwrapping, and eventually funneled into exchange and OTC addresses.

ZachXBT stated that this type of fraud mainly targets retail investors and advises victims to report to local law enforcement authorities as soon as possible.