Tether Freezes $38.4 Million in USDT Tied to Suspected $150 Million DSJ and BG Fraud Collapse

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On-chain investigator ZachXBT reported that Tether has frozen $38.4 million in USDT connected to a suspected fraud involving DSJ Exchange and BG Wealth Sharing. ZachXBT estimated the scheme may have involved approximately $150 million before the platforms halted user withdrawals in late April. 

ZachXBT Coordinated With Binance, OKX, and U.S. Law Enforcement to Track Funds

In a post on X, ZachXBT said he worked with Binance, OKX, and U.S. law enforcement to trace fund movements across blockchain networks. More than $41.5 million has been frozen across platforms as a result, including the $38.4 million frozen by Tether on the TRON network.

ZachXBT said more than $92 million moved between April 27 and May 3, with actors using token swaps, cross-chain bridges, and layered wallet transfers across Solana and TRON to obscure transaction trails. A blacklist action identified 19 TRON addresses carrying large USDT balances. One wallet alone held approximately $9.4 million.  

Approximately $63 million of those funds flowed to custody provider Cobo across four identified wallet addresses, while roughly $30 million was linked to an OKX address. ZachXBT said he used timing analysis to match Solana and TRON deposit addresses to corresponding Binance withdrawal patterns before sharing findings with relevant parties.

DSJ and BG Operated With a Fictitious CEO and Fabricated Trading Platform

According to ZachXBT, the scheme had been operating since 2025. DSJ Exchange was described as a fabricated trading platform, while BG Wealth Sharing functioned as an accompanying investment group. The operation used a fictitious CEO named Stephen Beard to front the scheme publicly and promoted activity through BonChat, a messaging application commonly used in Hong Kong.

U.S. law enforcement seized the domain Bgwealthsharing.com on April 23, 2026. On May 2, a video attributed to Beard claimed DSJ would pursue an initial public offering and introduced the 12% account balance fee, by which point withdrawals had already been disabled, ZachXBT said.

Multiple Regulators Had Issued Prior Warnings Against BG Wealth Sharing

Thirteen regulators across five continents had issued public warnings about DSJ and BG Wealth Sharing before withdrawals halted, according to ZachXBT. The Washington State Department of Financial Institutions also flagged the operation, noting that BG Wealth and DSJ falsely claimed to be licensed by the U.S. Securities and Exchange Commission. 

The UK’s Financial Conduct Authority had listed it as an unauthorized platform prior to the withdrawal halt. Regulators in New Zealand and Tonga issued warnings against the operation. ZachXBT said operators promised investors daily returns of up to 2.6%. Withdrawals subsequently stopped, and users were asked to pay a 12% fee described as a “tax” to unlock their funds.