U.S. Authorities Freeze $41M Linked to $150M BG Wealth Sharing Crypto Scam

Highlights:

• US authorities have frozen illegal funds linked to the BG Wealth Sharing crypto scam.
• BG Wealth Sharing promised their customers high daily returns, then blocked withdrawals and demanded a 12% tax.
• The crypto scam used social media groups and referral links to attract investors before blocking withdrawals.

U.S. authorities seized the BG Wealth Sharing website on Wednesday after investigators linked it to a suspected crypto scam. The website now displays a seizure notice issued under Operation Level Up and the Scam Center Strike Force. Investigators tracked suspicious wallet activity between April 27 and May 3 before taking action.

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Onchain investigator ZachXBT traced wallet flows linked to BG Wealth Sharing and identified transactions used to move illicit funds. He reported that actors linked to the crypto scam attempted to move more than $92 million in crypto assets. These transfers occurred within a short time window across multiple wallets.

1/ The $150M+ DSJ Exchange (DSJEX) / BG Wealth Sharing Ponzi scheme collapsed last week. From April 27 – May 3, illicit actors laundered $92M+ across chains to obscure the trail.

I helped lead an initiative with @Tether_to, @Binance Security Team, @OKX, & US law enforcement that… pic.twitter.com/h85hQ5IeRD

— ZachXBT (@zachxbt) May 5, 2026

U.S. authorities worked with Tether, Binance, and OKX to freeze funds tied to the crypto scam. This coordinated effort secured over $41 million and blocked further transfers. ZachXBT said transaction volumes linked to the crypto scam suggest losses may exceed $150 million.

ZachXBT said the platform has been operating since last year and processed thousands of exchange withdrawals linked to victims. He added that many users continued to trust the crypto scam despite withdrawal issues and regulatory warnings.

BG Wealth Sharing Withdrawal Issues Push Users to Panic

BG Wealth Sharing promoted itself as a crypto trading platform before users identified it as a crypto scam. The platform advertised daily returns between 1.3% and 2.6% to attract investors. It also offered referral commissions and rank-based bonuses to encourage more deposits. These incentives helped the crypto scam spread through social media groups.

The platform targeted retail investors by promoting high returns through messaging platforms and online communities. Many users joined through Telegram groups and referral links shared by existing participants. After initial deposits, the crypto scam encouraged users to add more funds through bonus incentives.

A person identified as CEO Stephen Beard released a video message to BG Wealth Sharing users. He claimed that the platform’s DSJ Exchange was preparing for an initial public offering. He also instructed users to pay a 12% tax on their account balances before withdrawals.

4/ On May 2, Stephen Beard posted a video claiming DSJ would IPO soon and demanded a 12% "tax" on account balances as part of the regulatory process.

By this point, withdrawals had already been disabled. pic.twitter.com/aS6AAR6QWK

— ZachXBT (@zachxbt) May 5, 2026

Users reported withdrawal issues after the tax demand when the site stopped processing requests. Several users said the platform delayed transactions and blocked account access. By Sunday, users posted warnings on social media that the platform may have executed a rug pull.

Crypto Scam Losses Rise Across Global Fraud Networks

Regulators warned about BG Wealth Sharing before the shutdown of the crypto scam. The Central Bank of Samoa stated that the platform operated without a license and labeled it an investment scam. It also urged the public to avoid engaging with the company due to fraud risks.

The Washington State Department of Financial Institutions confirmed it received complaints from BG Wealth Sharing investors. The regulator warned that platforms requiring deposits before withdrawals often operate advance fee scams. Data from the Federal Bureau of Investigation shows the broader scale of crypto scam activity. The agency reported $21 billion in losses from cyber-enabled crime last year. The FBI also said crypto investment scams accounted for a significant share of those losses.

U.S. authorities linked BG Wealth Sharing to wider scam networks that use multiple wallets to move funds. These groups promote fake investment platforms through social media channels. They also move stolen funds through complex wallet systems to avoid detection.

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