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CoinDesk1 min read
$150M Crypto Ponzi Crumbles: $41.5M Frozen In DSJ Exchange Collapse
TL;DR
A $150 million crypto Ponzi scheme involving the DSJ Exchange has collapsed, with $41.5 million now frozen. The scheme operated under false pretenses since 2025, promising high returns and using a fake CEO to lure victims.
Key points
- Ponzi scheme took over $150 million from victims
- DSJ Exchange and BG Wealth Sharing were fraudulent platforms
- Fake CEO Stephen Beard promoted the scam
- Victims were promised daily returns of 1.3%–2.6%
- $41.5 million frozen in the aftermath of the collapse
Mentioned in this story
DSJ ExchangeBG Wealth SharingStephen Beard
On-chain detective ZachXBT has shared details of the massive crypto Ponzi scheme that took over $150 million from unsuspecting victims before collapsing last week.
The Mechanics Behind The $150M Crypto Ponzi
In a series of X posts, ZachXBT unveiled the details of a Ponzi scheme that had been operating under the DSJ Exchange (DSJEX), a fake trading platform, and BG Wealth Sharing, a fraudulent investment scheme, since 2025. The scam involved a fake CEO named Stephen Beard, a self-proclaimed professor who represented the platform to the public.
According to the Tuesday thread, DSJEX and BG Wealth advertised daily returns of 1.3%–2.6%, with referral commissions and rank-based bonuses. In addition, Beard pushed recruitment and fake trading signals through a group on Hong Kong messaging app BonChat.
BG Wealth’s member recruitment posts. Source: ZachXBT
The Washington State Department of Financial Institutions (DFI) recently explained that investors used these trading signals on the DSJ exchange and were led to believe that the crypto investments were generating returns.
BG Wealth and DSJ claimed to be licensed by the US Securities and Exchange Commission (SEC), but the DFI found that neither of the forms filed by these companies indicated that they were registered with the SEC.
Thirteen regulators across five continents had issued public fraud warnings about the firms, including the UK’s Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Philippines’ SEC, and Washington’s DFI.
On April 23, US law enforcement seized one of BG Wealth’s domains as part of a joint operation conducted by Operation Level Up and the Scam Center Strike Force. However, the scam continued to operate for roughly another week.
Last Saturday, Beard posted a video affirming that DSJEX would soon go public and demanded a 12% “tax” on account balances as a prerequisite for the regulatory process. But the scammers had already disabled withdrawals by this point.
Q&A
What was the DSJ Exchange Ponzi scheme about?
The DSJ Exchange Ponzi scheme promised daily returns of 1.3%–2.6% and operated under false pretenses, defrauding victims of over $150 million.
Who was behind the DSJ Exchange scam?
The scam was led by a fake CEO named Stephen Beard, who falsely claimed to be a professor and promoted the fraudulent platform.
How much money was frozen after the DSJ Exchange collapse?
Following the collapse of the DSJ Exchange, $41.5 million has been frozen as part of the investigation into the Ponzi scheme.
When did the DSJ Exchange Ponzi scheme start operating?
The DSJ Exchange Ponzi scheme began operating in 2025 before it collapsed last week.
