On-chain investigator ZachXBT has released a comprehensive forensic report alleging that approximately $25 million from the presales of BlockDAG Network and ZKP was commingled and used to promote Gurhan Kiziloz-linked casino project Spartans.com. According to ZachXBT's latest Telegram post, the funds originated from BlockDAG's presale address and ZKP's presale wallet, were routed through consolidation addresses before being bridged from Ethereum to Tron. The funds were then allegedly moved through centralized exchanges HTX and BTSE before reaching wallets associated with Spartans and a dedicated KOL payment address on Tron (TRa9KjECpmmBBr1GKTwEWmskdiEKyLnf3C) and Ethereum (0xb8e55a329536f3e981c63567b7b1156533d1855a). ZachXBT emphasized that neither BlockDAG nor ZKP disclosed in their presale materials that investor funds could be used to promote a separate casino venture, raising significant concerns about transparency and the handling of investor capital.
The allegations center on how presale funds were allegedly mixed together rather than ring-fenced by the projects. As reported by ZachXBT, the funds moved through pooled wallets, cross-chain bridges from Ethereum to Tron, and centralized exchanges such as HTX and BTSE before reaching addresses used for KOL and streamer payments. The warning explicitly tells investors to avoid BlockDAG, ZKP and Spartans, with ZachXBT noting that after he requested clarification on X, the Spartans team blocked his account rather than addressing the allegations. According to the latest reports, retail investors have expressed growing concerns on social media, with complaints about the lack of transparency and the apparent reuse of funds across multiple projects.
According to RootData, ZachXBT had already alleged that Kiziloz was the real force behind BlockDAG and that the project's public-facing leadership functioned more as nominal cover than actual control. In earlier public warnings, ZachXBT said the token sale had run for more than two years while presale funds were being off-ramped through Middle Eastern OTC desks as Kiziloz spent heavily elsewhere. CryptoRank reported in October 2025 that ZachXBT alleged Gurhan Kiziloz was the real co-founder behind BlockDAG and that millions in presale money were funneled through OTC brokers. ZachXBT has also previously criticized BlockDAG and its founder for misleading marketing and extended fundraising periods, noting that the platform blocked him on X rather than addressing the claims.
The allegations build on months of scrutiny around BlockDAG's unusually long-running presale and opaque cash movements. As reported by CryptoPotato, allegations suggest BlockDAG had taken in more than $300 million from retail investors using aggressive promotional tactics and unrealistic return claims. Binance Square summarized earlier allegations that Kiziloz was behind both Spartans and BlockDAG and that more than $300 million had been raised from retail investors through social-media-heavy promotion and misleading partnership claims. At the time of this writing, BlockDAG, ZKP, and Spartans have not provided an official rebuttal concerning the wallet trails pointed out by ZachXBT. The case demonstrates the difficulties associated with the crypto presale market, where enormous amounts of money could be collected without any regulatory controls, highlighting the importance of investor due diligence and transparency in fund usage.
