Blockchain investigator ZachXBT has accused BlockDAG Network of allegedly defrauding retail investors of more than 300 million dollars through schemes promising unrealistic returns.
The warning came after Coffeezilla raised concerns about a promoter running a similar operation. ZachXBT responded by highlighting what he described as a broader pattern of deceptive practices within the crypto space.
Concerns Over Misleading Returns and Marketing Tactics
According to ZachXBT, one promoter advertising monthly returns between 5 and 10 percent blocked him after being questioned about the claims. Coffeezilla also cautioned users about investing with the individual, warning that such offers should raise red flags.
ZachXBT pointed out that these types of schemes continue to attract investors despite appearing overly simplistic. He cited BlockDAG Network as a prominent example, claiming the project used aggressive sales tactics and promises of high returns to draw in unsuspecting participants.
He shared examples of promotional content featuring phrases that emphasize limited supply and exaggerated profit potential, along with messaging designed to create urgency and push quick investment decisions.
History of Allegations and Questionable Practices
This is not the first time BlockDAG Network has faced criticism. ZachXBT has reportedly been examining the project for months, uncovering what he described as a pattern of aggressive presale campaigns, misleading claims, and inconsistencies in leadership.
The controversy traces back over two years, when the project conducted a presale while continuously increasing fundraising targets and promoting potential returns as high as 50 times or more. At the same time, it claimed listings on multiple exchanges and used sponsored content and influencer promotions to build credibility.
However, investigators have stated that there was no verifiable on chain trading activity to support those claims. Some investors have also reported difficulties withdrawing funds or receiving promised tokens.
Questions Surround Leadership and Fund Handling
More recently, attention has shifted to the project’s leadership structure. ZachXBT noted discrepancies between the publicly presented team and the individuals actually operating the platform.
Investigations have linked backend operations to a previously undisclosed figure identified as Gurhan Kiziloz, who is reportedly connected to the project. Findings suggest that the token presale has continued for more than two years, with funds allegedly being moved through over the counter channels in the Middle East.
ZachXBT further claimed that large sums of money were used to fund luxury purchases, including cars, real estate, and watches. Although Kiziloz initially denied involvement, he was later linked to the project through leaked documents, wallet data, and internal communications.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
