$41M Frozen in $150M Crypto Ponzi Collapse as Authorities Seize BG Wealth Sharing Domain

Crypto Ponzi Scheme Crackdown and Asset Freeze

Law enforcement agencies have frozen more than $41 million linked to BG Wealth Sharing, a suspected $150 million crypto Ponzi scheme, following its sudden collapse. The platform’s domain has been seized as part of a coordinated operation involving US authorities and industry players including Tether, Binance and OKX.

Blockchain investigator ZachXBT said over $92 million in crypto was moved by associated actors between April 27 and early May, triggering efforts to track and freeze funds. He noted total losses could exceed $150 million, citing activity since 2025 and thousands of identified victim withdrawals.

Fraud Tactics and Investor Targeting

Authorities say the group promoted crypto trading guidance and “daily profit opportunities” through aggressive social media campaigns. It offered referral commissions, rank-based rewards and daily returns ranging from 1.3% to 2.6%, typical characteristics of high-yield investment scams targeting retail investors.

Regulatory Warnings and Domain Seizure

Regulators had flagged BG Wealth Sharing as unlicensed as early as 2025. The Central Bank of Samoa labeled it a scam, while US agencies seized its website under Operation Level Up and the Scam Center Strike Force initiative.

Final Rug Pull and Investor Losses

Before shutting down, alleged CEO Stephen Beard told users a 12% balance tax was required for a planned IPO, raising red flags. By May 5, regulators warned it resembled an advance fee scam, where victims must deposit more funds to access withdrawals.