ZachXBT Alleges $25M Fund Misuse in BlockDAG, ZKP Presales

On-chain investigator ZachXBT alleged on May 20 that at least $25 million in presale funds from the BlockDAG Network and ZKP were improperly moved to promote a separate casino venture, Spartans.com, linked to Turkish entrepreneur Gurhan Kiziloz.

"Does Spartans want to explain to the community why there was at least $25M of commingling between Blockdag & ZKP presale funds with Spartans KOL payment addresses onchain?" ZachXBT questioned in a post on X, formerly known as Twitter.

The investigation's forensic graph shows funds from BlockDAG and ZKP presale wallets were consolidated, bridged from Ethereum to the Tron network, and then routed through centralized exchanges HTX and BTSE. The capital allegedly landed in wallets associated with Spartans and its Key Opinion Leader (KOL) payment addresses, raising significant questions about the use of investor capital.

These allegations highlight the persistent risks in the unregulated crypto presale market, where large sums are raised with often minimal transparency or investor protection. The lack of disclosure in the original BlockDAG and ZKP presale materials that funds could be used for a separate gambling project is a major red flag for retail investors, who have reportedly been complaining on social media about the projects. ZachXBT noted that the BlockDAG token presale has been ongoing for over two years without a functional product.

The investigator had previously warned about Kiziloz's activities, alleging he was the secret co-founder of BlockDAG, a project that has reportedly raised over $300 million. According to ZachXBT, the Spartans team blocked him on X after he publicly sought clarification on the fund flows. In response to the allegations, the Spartans account on X posted a message thanking the investigator for the "free advertisement" and offering him a 30% revenue share.

This article is for informational purposes only and does not constitute investment advice.