As an analyst, I’ve been following the situation with BG Wealth Sharing, and U.S. authorities have now seized their website. This action follows an investigation that connected the group to a potential cryptocurrency investment scam, and unfortunately, many users appear to have suffered significant financial losses as a result.
Summary
- U.S. authorities seized the BG Wealth Sharing domain after linking the platform to a suspected crypto investment scam.
- Onchain data traced by ZachXBT showed over $92 million in attempted transfers, with more than $41 million frozen through coordinated action.
- Regulators and users flagged blocked withdrawals and a 12% tax demand before the platform went offline, raising advance fee scam concerns.
A crypto operation tried to transfer over $92 million worth of digital assets between April 27th and May 3rd, according to on-chain investigator ZachXBT. However, a joint effort by Tether, Binance, OKX, and U.S. law enforcement successfully froze more than $41 million of those funds.
According to ZachXBT, the scam could result in over $150 million in losses. He found evidence of the activity dating back to 2025 and identified thousands of withdrawals made by those affected, using blockchain data. The scam targeted everyday users on social media, luring them into trusting the platform even when red flags were present.
The FBI reported in April that cybercrime caused $21 billion in losses last year, and a large amount of that total came from scams involving cryptocurrency investments.
U.S. authorities have seized the BG Wealth Sharing website as part of a crackdown on scams. A notice on the site, posted Wednesday, confirms the takeover is a result of joint efforts from Operation Level Up and the Scam Center Strike Force.
The platform had been identified as potentially problematic months before, with regulators issuing warnings. In April, Samoa’s Central Bank specifically labeled BG Wealth Sharing a scam and urged people to avoid it, as the company wasn’t authorized to operate.
The group falsely advertised itself as a cryptocurrency trading platform, promising daily profits of 1.3% to 2.6%. They also used referral programs and bonus tiers to encourage people to deposit more money.
Just before the platform shut down, someone claiming to be CEO Stephen Beard announced in a video that the DSJ Exchange was planning to become publicly traded. To do so, he said they needed to collect a 12% tax on all user account balances.
Starting Sunday, people online began sharing concerns that they couldn’t withdraw money from the platform, and some said all withdrawal requests were being blocked. The Washington State Department of Financial Institutions confirmed on Monday that they’d received similar complaints and cautioned the situation appeared fraudulent.
The regulator warned that any platform asking for extra fees before letting users withdraw their money is probably a scam, confirming what many concerned users have already reported.
Past investigations have revealed how these scams typically work. Recently, the U.S. Department of Justice announced that a federal operation, led by the FBI, targeted “pig butchering” scams, resulting in 276 arrests. The operation also shut down several fraudulent centers in Dubai, Thailand, and China. These centers tricked victims into sending money to fake cryptocurrency platforms, then laundered the funds through a complex system of digital wallets.
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2026-05-06 11:13