Suspected $150 million crypto Ponzi scheme BG Wealth Sharing has had its domain seized by law enforcement just days after allegedly rug-pulling users.
Blockchain investigator ZachXBT said in a post on X that actors tied to the scheme attempted to launder more than $92 million in crypto between April 27 and Sunday. He added that, in coordination with Tether, Binance, OKX, and US law enforcement, over $41 million has been successfully frozen.
ZachXBT noted that total losses may exceed $150 million, as the operation had reportedly been running since 2025 and involved thousands of victim withdrawals from exchanges.
“While these types of investment frauds may seem obvious to many, they deliberately target less experienced retail investors through social media,” he said, adding that many victims remain in denial after being scammed.
The Federal Bureau of Investigation reported in April that Americans lost $21 billion to cyber-enabled crime last year, with crypto investment scams accounting for a significant portion of those losses.
BG Wealth Sharing domain seized
As of Wednesday, the BG Wealth Sharing website displays a notice stating it has been seized by US authorities as part of a joint effort involving Operation Level Up and the Scam Center Strike Force.
Regulators had been warning about BG Wealth Sharing since 2025, flagging it as an unlicensed operation and urging investors to proceed with caution. In April, the Central Bank of Samoa explicitly labeled it an investment scam and advised the public to steer clear.
Authorities say BG Wealth Sharing marketed itself as a crypto trading advisory platform, heavily promoting its services on social media while offering “daily profit opportunities,” referral commissions, rank-based bonuses, and promised returns of 1.3% to 2.6% per day.
Final rug pull before shutdown, users claim
Before the platform went offline, its purported CEO, Stephen Beard, told users in a video message that its DSJ Exchange was preparing for an initial public offering. He also claimed a 12% tax on account balances was required as part of the regulatory process—an explanation many users now believe was a final step in the scheme before it collapsed.
By Sunday, users began warning on social media that the scheme appeared to be an ongoing rug pull. On Monday, the Washington State Department of Financial Institutions issued a similar alert.
In an update to its earlier notice, the regulator said it had received multiple investor complaints and cautioned that BG Wealth Sharing was likely a scam.
“A company that requires an investor to deposit additional external funds in order to withdraw their investment is highly likely to be operating an advance fee scam.”
