Watchdog Warns High-Risk Ponzi Scam Targets Communities in Tonga and New Zealand

Regulators in Tonga and New Zealand have issued a warning over a high-risk Ponzi-style investment scam that has been actively targeting communities across both countries, as well as Tongan diaspora groups in Australia and the United States. The scheme is currently operating under the names BG Wealth and DSJ EX, and forms part of a broader network of scams linked to an operation known as TXEX.

Authorities say the scam uses multi-level marketing (MLM)-style recruitment tactics and has been widely promoted through social media and private messaging platforms. Investigations have identified hundreds of related websites and multiple entities connected to the scheme, many of which appear to be duplicates created to evade detection and shutdowns.

Victims are typically invited to join investment groups on platforms such as WhatsApp, Viber, and Bon Chat. These groups are often presented as educational or trading communities and are led by individuals posing as a “professor” and an assistant. Participants are promised exceptionally high returns, sometimes as much as 100 percent, and are encouraged to recruit friends, relatives, and community members to join.

Once inside the group, individuals are instructed to open cryptocurrency exchange accounts and transfer funds from their bank accounts. They are then told to move their cryptocurrency into a so-called trading account operated through a mobile app. Authorities have warned that this app is fraudulent and may contain malware, creating additional risks beyond financial loss.

To build trust, the platform may initially allow users to conduct small trades or withdraw limited amounts of money. Early participants are sometimes paid small returns, reinforcing the illusion that the scheme is legitimate. However, when victims attempt to withdraw larger sums, they are told they must pay additional fees or charges to release their funds. Even if these fees are paid, the money is not returned. As recruitment slows, accounts are eventually frozen and the operators disappear.

BrokersView urge the public to exercise extreme caution and to avoid downloading related apps, investing funds, or sharing information about the scheme within community networks. People are also encouraged to warn family members and friends who may already be involved.

If you suspect a website is fraudulent or have fallen victim to a financial scam, you can Submit a Complaint to BrokersView.