Law enforcement freezes $41M connected to $150M crypto Ponzi collapse

Investment group BG Wealth Sharing, a suspected $150 million crypto Ponzi scheme, has had its domain seized by law enforcement days after allegedly rug-pulling users.

Onchain sleuth ZachXBT said on X on Tuesday that “illicit actors” connected to the group tried to launder more than $92 million in crypto between April 27 and Sunday, but he helped lead an initiative that froze more than $41 million, working alongside Tether, Binance, OKX and US law enforcement.

He also said the scheme was likely responsible for losses greater than $150 million, given it’s been operating since 2025 and the “thousands of victim exchange withdrawals identified.”

“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.”

Source: ZachXBT

The US Federal Bureau of Investigation reported in April that American victims lost $21 billion to cyber-enabled crime last year, with crypto investment scams accounting for a large share of the losses.

BG Wealth Sharing domain seized by US law enforcement

As of Wednesday, the BG Wealth Sharing website displays a notice that it was seized by US law enforcement as part of a joint operation between Operation Level Up and the Scam Center Strike Force.

Several regulators had warned that BG Wealth Sharing was an unlicensed entity and advised caution since 2025. In April, the Central Bank of Samoa said it was an investment scam and advised investors to avoid the company.

A domain linked to BG Wealth Sharing has been seized by US authorities. Source: BG Wealth Sharing 

BG Wealth Sharing, according to authorities, claimed to provide guidance on crypto trading, advertised heavily on social media and offered “daily profit opportunities,” referral commissions, rank-based bonuses and a daily yield of 1.3% to 2.6%.

Related: Google Cloud flags North Korea-linked crypto malware campaign 

One last rug pull before going offline, users say

Before BG Wealth Sharing went offline, purported CEO Stephen Beard told users in a video address Saturday that its DSJ Exchange was on the cusp of an initial public offering and that a 12% tax on account balances was required as part of the regulatory process.

BG Wealth Sharing CEO Stephen Beard told users a 12% tax on account balances was required as part of an initial public offering process. Source: ZachXBT

By Sunday, users warned on social media that the whole scheme was a rug pull in progress. On Monday, the Washington State Department of Financial Institutions issued a similar warning.

In an update to its earlier post about BG Wealth Sharing, the regulator said it had received complaints from investors and warned that it was likely a scam.

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