{"id":73581,"date":"2026-06-05T03:28:55","date_gmt":"2026-06-05T03:28:55","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/texas-halts-alleged-crypto-pyramid-scheme-after-zero-risk-millionaire-promises\/"},"modified":"2026-06-05T03:28:55","modified_gmt":"2026-06-05T03:28:55","slug":"texas-halts-alleged-crypto-pyramid-scheme-after-zero-risk-millionaire-promises","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/texas-halts-alleged-crypto-pyramid-scheme-after-zero-risk-millionaire-promises\/","title":{"rendered":"Texas Halts Alleged Crypto Pyramid Scheme After \u2018Zero-Risk\u2019 Millionaire Promises"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Recruiters allegedly promised investors they could become millionaires within months through aggressive referral incentives.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Regulators cited claims of 60% monthly returns, principal protection, and a 99.6% trading success rate.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Investors faced withdrawal hurdles that included a 20% handling fee and a later 12% charge tied to taxes and account transfers.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Texas Order Flags <span>Crypto<\/span> Returns, Recruitment, and Investor Lockups<\/h2>\n<p>The Texas State Securities Board stated on June 3 that it issued an emergency cease and desist order against BG Wealth Sharing LTD and DSJ Exchange PTY Ltd. The order targets an alleged <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> investment and multilevel marketing (MLM) scheme aimed at Texas investors. Regulators described DSJ as a purported <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> exchange tied to passive investments and AI-enabled trading claims.<\/p>\n<p>The order also names BG Wealth Sharing Group LLC, Thaddious Thomas, and Gagandeep Sarkaria. Regulators reported that BG Wealth sent investors trading codes through Bonchat, a messaging app, and instructed them to enter the codes on DSJ\u2019s purported <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> exchange. The process gave investors little control over trades while making the platform appear active. It also rewarded recruitment, allowing participants to receive more trading codes by bringing others into the program.<\/p>\n<p>The regulator stated:<\/p>\n<blockquote>\n<p>\u201cRecruiters allegedly lured investors with claims that a small initial deposit could generate \u2018lifetime monthly income\u2019 and turn participants into millionaires within months through aggressive recruitment bonuses.\u201d<\/p>\n<\/blockquote>\n<p>The scheme used several pressure points to build investor confidence. Regulators cited claims of a 99.6% success rate, guaranteed principal protection, monthly returns of at least 60%, and a doubling of principal in about 40 days. Those promises made the platform appear systematic and low-risk. The order indicates investors depended on expert systems, AI-enabled strategies, and scheduled trading codes.<\/p>\n<h2>Exit Fees and State Actions Raise Investor Risk Concerns<\/h2>\n<p>The emergency cease and desist order states that investors seeking withdrawals faced a handling fee of about 20% of account value. Respondents presented the charge as an anti-arbitrage and anti-money laundering measure. Texas also reported that BG Wealth later demanded another 12% from each investor\u2019s account value. That payment was tied to taxes and account transfer fees.<\/p>\n<p>The regulator noted:<\/p>\n<blockquote>\n<p>\u201cAfter disabling standard account withdrawals, the operators demanded that victims pay an additional 12% \u2018exit tax\u2019 or \u2018compliance fee\u2019 out of pocket before any funds could be released.\u201d<\/p>\n<\/blockquote>\n<p>Texas joins Washington and Hawaii in taking formal state securities action involving BG Wealth Sharing or affiliated entities. Utah and Alaska also issued investor warnings tied to BG Wealth Sharing and DSJ Exchange, but those alerts were not formal cease and desist orders. The broader response shows how the operation reached investors across several states.<\/p>\n<p>The exit strategy created another risk for investors. After regulatory warnings, respondents blamed DSJ for fraud claims and directed investors toward HQIEX, described in the order as a replacement exchange service. That shift could keep victims engaged while adding uncertainty. It also redirected attention from withdrawals, missing disclosures, fund custody, trading activity, and commingling concerns.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/texas-halts-alleged-crypto-pyramid-scheme-after-zero-risk-millionaire-promises\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Recruiters allegedly promised investors they could become millionaires within months through aggressive referral incentives. Regulators cited claims of 60% monthly returns, principal protection, and a 99.6% trading success rate. Investors faced withdrawal hurdles that included a 20% handling fee and a later 12% charge tied to [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":73582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/73581"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=73581"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/73581\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/73582"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=73581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=73581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=73581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}