Crypto Fraud Shockwave: Authorities Freeze Tens Of Millions In Assets

A video message from a man calling himself Stephen Beard may have been the final move in a long-running crypto con. Days before BG Wealth Sharing went dark, Beard told investors their accounts would be taxed 12% as part of a pending initial public offering for its DSJ Exchange platform.

By Sunday, users on social media had figured out what was happening. By Monday, regulators were warning the public. By Tuesday, the domain was gone — seized by US law enforcement.

Last-Minute Warning Signs Came Too Late For Many

The Washington State Department of Financial Institutions issued an alert Monday, saying it had received complaints from investors and that BG Wealth Sharing was likely operating a scam.

Officials warned that any company requiring investors to deposit more money before they can withdraw their own funds is a strong sign of an advance fee fraud.

That warning followed similar advisories stretching back to 2025, including one from the UK’s Financial Conduct Authority and another from the Central Bank of Samoa, which in April called the group an outright investment scam.

Despite those red flags, thousands of people had already sent their money in. BG Wealth Sharing recruited users through heavy social media promotion.

It promised daily returns of 1.3% to 2.6%, referral bonuses, and rank-based rewards — the kind of structure that keeps people recruiting others and brings in fresh funds to pay earlier investors.

According to blockchain investigator ZachXBT, total losses from the scheme likely exceed $150 million.

Between April 27 and May 3, actors connected to the group tried to move more than $92 million in crypto. ZachXBT, working alongside Tether, Binance, OKX, and US law enforcement, helped freeze over $41 million of those funds.

The BG Wealth Sharing website now shows a seizure notice from a joint operation involving Operation Level Up and the Scam Center Strike Force.

Victims Recruited Through Social Media, Targeted For Inexperience

ZachXBT noted that many victims were still in denial after the scheme collapsed. According to him, these types of investment frauds deliberately go after inexperienced retail investors through social media, where slick branding and testimonials can look convincing to someone unfamiliar with how these operations work.

The FBI reported in April that Americans lost $21 billion to cyber-enabled crime in a single year, with crypto investment scams making up a significant portion of those losses.

BG Wealth Sharing had been running since at least 2025, and thousands of victim exchange withdrawals were identified in the investigation.

The domain seizure is part of a wider crackdown. The Scam Center Strike Force, which was involved in this operation, has previously taken action against crypto fraud networks in Southeast Asia.

United States authorities have been increasing coordination with exchanges and on-chain investigators to track and freeze funds before they can be fully laundered.

Featured image from MetaAI, chart from TradingView