According to on-chain analyst ZachXBT, around $25 million from the pre-sale funding of BlockDAG Network and ZKP seems to have been combined and used for influencer marketing and gambling promotions connected to Gurhan Kiziloz.
Summary
- ZachXBT alleges BlockDAG and ZKP presale money was used interchangeably rather than ring-fenced by project.
- He says roughly $25 million flowed through pooled wallets, cross-chain bridges and exchanges before reaching addresses used for KOL and streamer payments.
- The warning explicitly tells investors to avoid BlockDAG, ZKP and Spartans, a gambling platform ZachXBT has repeatedly linked to Gurhan Kiziloz.
ZachXBT alleges that the team behind BlockDAG Network and ZKP took money raised from early investors and used some of it for things like paying influencers, sponsoring streamers, and gambling advertising, rather than using it as originally promised.
He claims that tracking the transactions on the blockchain reveals roughly $25 million from the initial coin offerings was moved between several wallets. This money was then sent to cryptocurrency exchanges and ultimately to addresses linked to rewards and payments for the Spartans team and other groups connected to Gurhan Kiziloz.
The accusations are serious because they suggest more than just poor financial handling – they claim investor funds were secretly moved between different projects. Researcher ZachXBT, as reported by RootData, previously stated that Kiziloz was the true leader of BlockDAG, and that the people publicly representing the project didn’t have real decision-making power.
Fund flows under scrutiny
My research has uncovered further concerns regarding BlockDAG. For months, I’ve been looking into their exceptionally lengthy presale period and the lack of transparency surrounding their financial activity. Previously, I publicly flagged on X that the token sale has been ongoing for over two years, and it appears funds from that sale were being converted to cash through over-the-counter (OTC) desks in the Middle East, coinciding with significant spending by the founder, Kiziloz.
Several other sources have reported similar details. In October 2025, CryptoRank stated that ZachXBT accused Gurhan Kiziloz of being the true co-founder of BlockDAG and that funds from early sales—amounting to millions—were moved through private brokers. Later, CryptoPotato summarized claims that BlockDAG attracted over $300 million from individual investors by using strong marketing and promising unrealistically high returns.
The key issue now is the claim that ZKP and BlockDAG weren’t financially independent, despite being presented that way to investors. ZachXBT points out that the documents for both projects didn’t mention funds might be shared, and transaction records seem to confirm this happened.
Spartans and investor warnings
ZachXBT investigated the movement of funds and pinpointed specific digital wallets linked to Spartans’ key opinion leaders (KOLs) and the BlockDAG / ZKP presale. Based on his findings, he strongly advises investors to avoid BlockDAG, ZKP, and Spartans.
This warning aligns with previous reports about his work. Binance Square previously detailed accusations that Kiziloz was involved with both Spartans and BlockDAG, and that these projects raised over $300 million from everyday investors using aggressive social media marketing and deceptive claims about partnerships.
From what I’m seeing, frustration among retail investors is very real. I’ve been monitoring online communities like Reddit and Facebook, and the consistent complaints center around delayed withdrawals, a lack of clarity about how funds are being used, and serious doubts about whether the money raised was ever properly separated from the company’s own funds. It’s not just speculation – people are actively expressing these concerns.
The main issue is clear: combining funds from separate early sales, even if marketed as individual opportunities, and then using that money to pay promoters for a gambling platform isn’t sound financial practice. This behavior makes all early-access sales appear to be simply a way to move money from individual investors into the hands of marketers.
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2026-05-21 01:45