Tonga and New Zealand authorities are joining forces to combat a high-stakes cryptocurrency scam that has been targeting communities in both countries. The scam, known as BG Wealth/DSJ Exchange, is a Ponzi scheme that has been rapidly spreading among Tongans, raising concerns. The National Reserve Bank of Tonga has issued a warning and is collaborating with New Zealand's Financial Markets Authority (FMA) to address the issue. The FMA's executive director, Clare Bolingford, emphasizes the importance of their partnership in sharing information to combat the scam. Since April last year, the FMA has taken down over 800 websites linked to the scam, which keeps creating new ones with similar information but different names and images. The scam operates through platforms like Viber and WhatsApp, and Tongans involved are promoting it on Facebook to attract friends and family. The scam involves victims opening cryptocurrency exchange accounts, transferring funds, and then being instructed to move their crypto to a supposed trading account on a fake app. Initially, victims can do some trading and even withdraw small amounts, but when they try to retrieve their money, they are told to pay a large fee, which they never receive. The victims are eventually locked out of their accounts. Several Tongans in Auckland have spoken out against the scam, warning their community to avoid it. Tioly Fatukala, who has exposed past scams, notes that the scam is happening quietly among families due to its cell phone-based nature, and she has faced verbal abuse from those involved. Tonga's Prime Minister, Lord Fakafanua, expresses deep concern over Tongans' involvement and the victims' suffering at the hands of 'very bad people'. He advises that if something seems too good to be true, it likely is, and it's best to avoid such scams.
