New Zealand and Tonga Authorities Warn Investors of Ponzi-Style Scam Linked to BG Wealth/DSJ EX

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Financial regulators in New Zealand and Tonga have issued warnings to the public about a Ponzi-style investment scam operating across both countries under the name BG Wealth/DSJ EX.

According to New Zealand's Financial Markets Authority (FMA), the scheme is part of a broader network of scams known as TXEX, which relies on multi-level marketing (MLM)-style recruitment tactics. The regulator said it has identified 813 websites and 30 entities connected to the operation, many of which were found to be duplicate platforms used to promote the same scam.

Authorities said the scammers typically approach potential victims through social media messaging platforms such as WhatsApp, Viber and Bon Chat. Victims are invited to join private investment groups that are often presented as being led by a "professor" and an assistant. Within these groups, participants are promised returns of up to 100 percent and are encouraged to recruit friends and family members.

Once involved, individuals are instructed to open cryptocurrency exchange accounts and deposit funds from their bank accounts. They are then told to transfer their cryptocurrency into a purported trading account on a fake application. Regulators warned that the application contains malware, exposing users to additional risks beyond financial loss.

The scheme is designed to appear legitimate in its early stages. Victims may initially be able to place trades and, in some cases, withdraw small amounts of money. This early success is intended to build trust and motivate participants to bring in new recruits. However, when users attempt to withdraw larger sums, they are told they must pay additional fees to release their funds. Even after paying these fees, victims do not recover their money.

As with other Ponzi-style schemes, authorities said the operation ultimately collapses when recruitment slows, at which point users are locked out of their accounts and the operators disappear.

National Reserve Bank of Tonga Governor Tatafu Moeaki urged the public to exercise caution, particularly within Tongan communities in both Tonga and New Zealand.

"We recommend extreme caution around this investment scam," Moeaki said. "If you know family members, friends, especially people in Tongan communities both in Tonga and New Zealand already involved, please share our warnings with them immediately. This scam often promises fast and easy payouts but there are no guaranteed quick payouts, only high risks of loss."

Moeaki also advised investors to be wary of investment opportunities promoted through social media and to seek reliable, independent advice before committing funds.

"By raising awareness of these scam methods and encouraging investors to stop and think carefully before making investment decisions that might be driven by a scam, we hope to protect our communities from harm," he said.

Both the FMA and the National Reserve Bank of Tonga encouraged anyone who suspects they have encountered the scam to report it promptly to the relevant authorities.