U.S. authorities have seized the website domain of BG Wealth Sharing after investigators linked the platform to an alleged crypto investment scam that may have caused more than $150 million in user losses.
The enforcement action follows months of growing complaints from users, regulators, and blockchain investigators who accused the platform of operating a fraudulent investment scheme.
Authorities Freeze Millions Linked to BG Wealth Sharing
Blockchain investigator ZachXBT said wallets associated with BG Wealth Sharing attempted to move more than $92 million in crypto between April 27 and May 3.
Through coordinated action involving:
- Tether
- Binance
- OKX
- U.S. law enforcement
more than $41 million in assets were frozen before the funds could be fully transferred.
According to ZachXBT, the scam may have generated over $150 million in total losses, based on on-chain activity dating back to 2025 and thousands of exchange withdrawals linked to victims.
Website Now Displays U.S. Seizure Notice
As of Wednesday, the BG Wealth Sharing website shows an official seizure banner from U.S. authorities.
The notice confirms the domain was taken over as part of a joint enforcement operation involving:
- Operation Level Up
- Scam Center Strike Force
Platform Raised Red Flags Before Shutdown
Regulators had warned about BG Wealth Sharing months before the seizure.
In April, the Central Bank of Samoa labeled the platform an investment scam and said it was operating without a license.
The company marketed itself as a crypto trading platform promising:
- 1.3% to 2.6% daily returns
- Referral commissions
- Rank-based bonuses for recruiting others
These types of promises are commonly associated with high-risk Ponzi-style schemes.
Users Reported Withdrawal Blocks and “Tax” Demands
In the days before the platform went offline, users began reporting restricted withdrawals and frozen accounts.
A person identified by participants as CEO Stephen Beard allegedly told users that BG Wealth Sharing’s DSJ Exchange needed to collect a 12% tax on account balances before withdrawals could resume or before a supposed IPO could proceed.
Regulators say demands like this are a major warning sign of an advance-fee scam, where victims are pressured to deposit more money before accessing their own funds.
The Washington State Department of Financial Institutions later confirmed it had received complaints and warned the public that the platform showed signs of fraud.
Crypto Investment Scams Remain a Major Threat
The case adds to a growing list of crypto-related fraud crackdowns in the U.S.
According to recent figures from the Federal Bureau of Investigation, cyber-enabled crimes caused $21 billion in losses last year, with crypto investment scams representing a major share of that total.
Authorities continue to warn investors to be cautious of platforms promising guaranteed returns, referral rewards, or requiring extra payments before withdrawals.
