Tether, Binance, and Others Freeze $41.5M of Stolen Funds

Stablecoin issuer Tether, alongside Binance, OKX, US law enforcement, and independent security agents, has frozen over $41.5 million tied to the collapse of the DSJ Exchange and BG Wealth Sharing investment scheme, according to on-chain investigator ZachXBT.

Tracking Stolen Funds On-Chain

According to the investigator, illicit actors laundered over $92 million across chains to obscure the trail between April 27 and May 3. Meanwhile, Tether alone froze $38.4 million of the laundered funds on Tron, blocking 19 addresses in a single transaction.

ZachXBT further explained that he performed a timing analysis across Solana and TRON deposits on Binance, matching them with TRON withdrawals. He shared a screenshot showing the 19 blocked addresses, including a particular address with about $9.4 million, and others holding between $1 million and $2 million each.

Describing the scheme, the on-chain investigator said DSJ/BG Wealth Sharing started operations in 2025, advertising daily returns of 1.3% to 2.6%, referral commissions, and rank-based bonuses. He noted that DSJ was a fake trading platform, while BG served as the investment group that recruited victims.

Regulators Raised Concerns Before Collapse

Before collapsing, regulators had raised concerns about the DSJ/BG scheme, warning users about the potential dangers of patronizing the product. Utah’s Division of Securities cited alerts from regulators in Canada, New Zealand, Tonga, Samoa, the UK, the Philippines, and Washington.

Meanwhile, the UK Financial Conduct Authority listed the program as an unauthorized firm in May 2025. The regulator warned that the organizers may have been providing financial services without permission.

In February 2026, the Central Bank of Tonga and New Zealand’s Financial Markets Authority (FMA) warned investors about the program, stating that it was part of a wider Ponzi-style investment scam known as TXEX. New Zealand authorities added that the scam adopted an MLM-style recruitment tactic and that the FMA has identified 813 websites and 30 entities linked to the operation.

A Growing Pattern for Tackling On-Chain Thieves

In the meantime, ZachXBT noted that the scammers laundered funds from the DSJ/BG hot wallet through token swaps, cross-chain bridges, wrapping and unwrapping of USDD stablecoins, and consolidation across hundreds of addresses. However, he traced over $93 million in outflows from consolidation addresses to multiple deposit wallets between April 27 and May 3.

The latest freeze highlights a growing pattern of stablecoin issuers’ and exchanges’ intervention during hacks, protocol breaches, and other kinds of on-chain exploits. Although such interventions do not automatically imply recovery for victims, further movement of blacklisted funds is halted, while law enforcement and service providers continue investigating.

Related: Tether Freezes $182 Million In USDT Across Five Tron Wallets