BlockDAG is under fire as investigator alleges $300 million fraud

The allegations point out how aggressive marketing tactics are still able to attract retail investors despite repeated warnings.

Blockchain investigator ZachXBT has publicly criticized the BlockDAG (BDAG) network for allegedly stealing more than $300 million from unsuspecting retail investors through scams promising them unrealistic high gains.

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

ZachXBT reveals a pattern in cryptocurrency scams

In his position He claimed The online personality blocked him after he reached out to ask about the 5-10% monthly return rate he advertises on his social media.

“If you invest money with Eric McNeil, be careful,” Kovezella wrote.

Another X user named Detective commented on the situation, saying that it was surprising to them how most people would accept the reasonable price. For this, ZachXBT He responded By pointing out that such low-effort scams are becoming common in the industry.

The on-chain investigator gave an example of how BlockDAG Network was able to steal more than $300 million from ordinary investors through high-pressure sales tactics that deceived investors by promising a high return on their money.

He also shared screenshots of the project’s most recent social media posts that showed him touting a huge ROI using sales language like “$0.0000061, limited supply, 95x potential!” Another image also shows BlockDAG trying to create urgency with a message that says: “Last 72 hours of all-time low entry at $0.0000022 for 85x market price.”

History of the BlockDAG controversy

This is not the first time BlockDAG has been involved in this type of controversy. ZachXBT has been investigating the project for several months, with his findings shared earlier suggestion A pattern of aggressive pre-sale fundraising, misleading marketing claims, and leadership issues.

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The scandal dates back just over two years, when the platform was launched to run Pre-selling during this period repeatedly drove fundraising goals higher while offering people unrealistic potential returns of 50x, 85x and 100x. At the same time, the project was announcing its listing on several exchanges and using sponsored articles as well as influencer ads to appear legitimate.

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

Recently, the project’s leadership structure has also been in the spotlight. Blockchain Investigator found that individuals publicly appearing as the BlockDAG team did not match the actual staff.

Investigators have linked The platform’s backend operations of a hidden party later identified as Gurhan Kyzyloz, the alleged co-founder of Spartans. ZachXBT discovered that the team has been holding a pre-sale for the token for over two years now, while also raising funds via OTCs in the Middle East.

He added that the tech billionaire was also spending lavishly on luxury cars, properties and watches using the money he obtained from the scam. Meanwhile, Kiziloz initially denied any involvement in the project but was later implicated through leaked documents, wallet details and internal screenshots.