BlockDAG Under Fire as Investigator Alleges $300M Scam
Blockchain investigator ZachXBT has publicly referred to as out BlockDAG Network (BDAG) for allegedly stealing greater than $300 million from unsuspecting retail traders by means of scams that promise them unrealistic high positive aspects.
The warning was issued in response to a put up by YouTube investigator Coffeezilla, who alerted his followers a few promoter that was working the same scheme.
ZachXBT Exposes A Pattern In Crypto Scams
In his X put up, the detective claimed that the web persona had blocked him after he reached out to ask in regards to the 5-10% month-to-month return charge he advertises on his social media.
“If you invested cash with ERIC MCNEIL, be warned,” wrote Coffeezilla.
Another X consumer beneath the title detective weighed in on the scenario, saying that it was shocking to them how most individuals would settle for the speed as cheap. To this, ZachXBT responded by stating that such low-effort scams had grow to be frequent within the business.
The on-chain sleuth gave the instance of how BlockDAG Network had managed to steal over $300 million from on a regular basis traders by means of high-pressure gross sales ways that tricked traders by means of the promise of a high return on their cash.
He additionally shared screenshots of the undertaking’s newest social media posts that featured it selling excessive ROI utilizing gross sales language like “$0.0000061 LIMITED SUPPLY, 95x POTENTIAL!” Another picture additionally reveals BlockDAG making an attempt to create urgency by means of a message studying, “LAST 72 HOURS LOWEST ENTRY EVER at $0.0000022 for 85x on market worth.”
BlockDAG’s History of Controversy
This isn’t the primary time BlockDAG has been concerned in any such controversy. ZachXBT has been investigating the undertaking for months, together with his earlier findings suggesting a sample of aggressive presale fundraising, deceptive advertising and marketing claims, and management points.
The scandal dates again to a bit of over two years in the past, when the platform ran a presale throughout this era that repeatedly elevated its fundraising targets whereas additionally providing individuals unrealistic 50x, 85x, and 100x potential returns. At the identical time, the undertaking was saying that it had been listed on a number of exchanges and utilizing sponsored articles as nicely as influencer promoting to look respectable.
However, ZachXBT and different analysts have reported that there was no precise buying and selling exercise on-chain to match these itemizing claims. Several victims have additionally contacted investigators with testimonies displaying how they had been unable to withdraw funds or obtain the promised tokens.
Most not too long ago, the undertaking’s management construction additionally got here into the highlight. The blockchain detective discovered that the people publicly proven as BlockDAG’s group didn’t match its precise working employees.
Investigators have linked the platform’s backend operations to a hidden get together that was later recognized as Gurhan Kiziloz, the alleged co-founder of Spartans. ZachXBT found that the group has been holding the token presale for over two years now, whereas additionally off-ramping the funds through Middle Eastern OTCs.
He added that the tech billionaire has additionally been spending lavishly on luxurious vehicles, actual property, and watches utilizing funds gotten from the rip-off. Meanwhile, Kiziloz initially denied any involvement with the undertaking however was later implicated by means of leaked paperwork, pockets particulars, and inner screenshots.
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