The Financial Markets Authority (FMA – Te Mana Tātai Hokohoko) and Tonga’s National Reserve Bank are alerting investors in Tonga and New Zealand to a scam operating under the name BG Wealth/DSJ EX.
This scam forms part of the broader Ponzi-style TXEX scheme, which relies on multi-level marketing (MLM)-style recruitment tactics.
The FMA’s warning currently identifies 813 websites and 30 entities connected to this scam, all confirmed as duplicates.
“Together with the National Reserve Bank of Tonga, we want to raise awareness of this scam and remind people – do not download the app, do not invest, and don’t share it in your community networks,” FMA Executive Director of Licensing and Conduct Supervision Clare Bolingford said.
Scammers lure victims into social media investment groups on platforms like WhatsApp, Viber, and Bon Chat, often led by a “professor” and his assistant. They promise 100% returns and urge recruits to bring in friends and family.
Once inside the group, victims are instructed to open a cryptocurrency exchange account, fund it from their bank, and transfer the crypto to a “trading account” on a fraudulent app. This app harbours malware, posing additional risks.
According to Bolingford, victims are losing substantial sums to the scam, which is especially widespread in Tongan communities across New Zealand, Tonga, Australia, and the United States.
Early participants can withdraw small amounts, building trust and prompting them to recruit others. However, attempts to access full funds trigger demands for fees to “release” the money.
Even after paying the fee, victims won’t recover their money. Like other Ponzi schemes, once recruitment slows, scammers lock all users out of accounts and vanish.
“If you know family members, friends, or 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,” National Reserve Bank of Tonga Governor Tatafu Moeaki said.
“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.”