BlockDAG Billion-Dollar Mystery: Investigator Uncovers Shocking $300M Scam Scheme

The allegations point to how aggressive marketing tactics can still draw in retail investors despite repeated warnings.

Blockchain investigator ZachXBT has publicly called out BlockDAG Network (BDAG) for allegedly stealing more than $300 million from unsuspecting retail investors through scams that promise them unrealistic high gains.

The warning was issued in response to a post by YouTube investigator Coffeezilla, who alerted his followers about a promoter that was running a similar scheme.

ZachXBT Exposes A Pattern In Crypto Scams

In his X post, the detective claimed that the online personality had blocked him after he reached out to ask about the 5-10% monthly return rate he advertises on his social media.

“If you invested money with ERIC MCNEIL, be warned,” wrote Coffeezilla.

Another X user under the name detective weighed in on the situation, saying that it was surprising to them how most people would accept the rate as reasonable. To this, ZachXBT responded by pointing out that such low-effort scams had become common in the industry.

The on-chain sleuth gave the example of how BlockDAG Network had managed to steal over $300 million from everyday investors through high-pressure sales tactics that tricked investors through the promise of a high return on their money.

He also shared screenshots of the project’s latest social media posts that featured it promoting extreme ROI using sales language like “$0.0000061 LIMITED SUPPLY, 95x POTENTIAL!” Another image also shows BlockDAG trying to create urgency through a message reading, “LAST 72 HOURS LOWEST ENTRY EVER at $0.0000022 for 85x on market price.”

BlockDAG’s History of Controversy

This isn’t the first time BlockDAG has been involved in this type of controversy. ZachXBT has been investigating the project for months, with his earlier findings suggesting a pattern of aggressive presale fundraising, misleading marketing claims, and leadership issues.

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The scandal dates back to a little over two years ago, when the platform ran a presale during this period that repeatedly increased its fundraising targets while also offering people unrealistic 50x, 85x, and 100x potential returns. At the same time, the project was announcing that it had been listed on several exchanges and using sponsored articles as well as influencer advertising to appear legitimate.

However, ZachXBT and other analysts have reported that there was no actual trading activity on-chain to match these listing claims. Several victims have also contacted investigators with testimonies showing how they were unable to withdraw funds or receive the promised tokens.

Most recently, the project’s leadership structure also came into the spotlight. The blockchain detective found that the individuals publicly shown as BlockDAG’s team did not match its actual working staff.

Investigators have linked the platform’s backend operations to a hidden party that was later identified as Gurhan Kiziloz, the alleged co-founder of Spartans. ZachXBT discovered that the team has been holding the token presale for over two years now, while also off-ramping the funds via Middle Eastern OTCs.

He added that the tech billionaire has also been spending lavishly on luxury cars, real estate, and watches using funds gotten from the scam. Meanwhile, Kiziloz initially denied any involvement with the project but was later implicated through leaked documents, wallet details, and internal screenshots.