Key Takeaways
- ZachXBT alleges misuse of presale funds.
- BlockDAG faces growing scrutiny.
- A prior investigation detailed investor complaints, unpaid employees, and failed sponsorship deals.
Crypto investigator ZachXBT has again railed against Gurhan Kiziloz, the alleged co-founder of Spartans.com and BlockDAG Network.
BlockDAG network has faced months of allegations that it raised more than $300 million from inexperienced retail investors through misleading crypto promotions.
On Wednesday, the famed sleuth claimed that at least $25 million in presale funds linked to two crypto investment schemes were commingled and later used to pay influencers promoting Kizloz’s casino venture.
The allegations add to mounting criticism surrounding Kiziloz, BlockDAG, and its handling of funds and operational transparency.
Latest BlockDAG Warnings
On Wednesday, ZachXBT published that the traced funds originated from presales tied to the BlockDAG Network and another project, ZKP.
He alleged that the funds were subsequently used to compensate “KOL streamers” who promoted Spartans.com.
“I have not seen any disclosure in the original BlockDAG Network or ZKP presale materials indicating that funds would be used to promote a separate venture,” ZachXBT wrote.
He added that retail investors continued to publish complaints about the projects on social media.
“This is another red flag on top of the issues outlined in my earlier post,” he wrote.
“I advise everyone to stay away from BlockDAG, ZKP, and Spartans.”
In response to a Spartan’s post, ZachXBT questioned the movement of funds between projects linked to Kiziloz.
“Does Spartans want to explain to the community why there was at least $25 million of commingling between BlockDAG and ZKP presale funds with Spartans’ KOL payment addresses on-chain?” he wrote on X.
ZachXBT said the Spartans team subsequently “immediately blocked” him on X and hid his reply.
Building Upon Recent Allegations
The latest allegations build on previous warnings issued by the blockchain investigator.
In October, ZachXBT published allegations identifying BlockDAG’s leadership as “figureheads.”
He claimed he was then blocked on social media, before Kiziloz later publicly acknowledged involvement with the project.
In April, ZachXBT highlighted how the Blockdag Network had raised over $300 million from “unsophisticated retail investors” through “social media ads which stated unrealistic returns.”
He further alleged that the token sale had been ongoing for more than two years.
During that time, presale funds were being off-ramped through over-the-counter crypto brokers in the Middle East, he claimed.
“At the same time Gurhan was spending very lavishly on luxury cars, real estate, watches, giveaways, etc.,” ZachXBT wrote.
In the same thread, he claimed that online search results related to Kiziloz were dominated by paid public relations articles.
He added that he has had “10-15 victims at minimum DM or tag me claiming to have lost money.”
Earlier Alarms
The latest accusations follow an earlier investigation by DL News, which reported extensive investor complaints and concerns over BlockDAG’s handling of funds.
DL News interviews with 13 insiders found that thousands of crypto addresses participated in the presale but had little to show for it.
Some investors told DL News they had not received the promised mining equipment. Others anticipated that listings on 20 crypto exchanges would fall to just five.
Others said their token allocations were diluted over time.
DL News also reported that at least two football clubs withdrew from sponsorship agreements after BlockDAG allegedly failed to make payments tied to multi-million-dollar deals.
Former executive assistant Liza Van Den Berg told DL News that roughly 24 employees were allegedly still owed more than $140,000 in wages for work completed in December.
Two employees separately told the outlet they had not been paid.
However, DL News said it could not independently verify those claims.
In comments to the publication, BlockDAG Chief Executive Nic Van Den Bergh said the company had raised more than $200 million but declined further interviews.
Den Bergh said public comments could create “unnecessary noise during a critical execution phase.”
CCN has reached out to BlockDAG for comment.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
