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BlockDAG’s $433M Presale in Crisis After ZachXBT Links Founder to Past Scams

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The $433 million presale of blockchain undertaking BlockDAG could also be going through a significant credibility disaster after on-chain investigator ZachXBT alleged that the individual behind the undertaking may not be its publicly offered CEO and will have ties to earlier crypto controversies.

The dispute started earlier this week when BlockDAG’s official X account posted a promotional message titled “The VALUE ERA Starts Tomorrow — A Message From Our CEO, Antony Turner.”

In the put up, Turner declared the start of a brand new part for the undertaking, promising “shortage, equity, and actual worth” whereas revealing that each one presale bonuses would finish, ultimate tokenomics could be printed, and an official presale finish date could be introduced.

He urged buyers to make “ultimate purchases” earlier than what he described as “the second all the pieces shifts.”

Shortly after the announcement, ZachXBT, identified for exposing crypto scams and fraudulent ventures, responded publicly.

A $430M Presale and an Alleged Hidden Founder — What’s Really Going On at BlockDAG?

ZachXBT claimed that BlockDAG’s supposed CEO was merely a paid frontman for Gurhan Kiziloz, a British entrepreneur beforehand linked to failed fintech and crypto ventures. “Stop your lies,” Zach wrote.

“The grifter Gurhan Kiziloz is the actual co-founder secretly behind BlockDAG, paying individuals like Antony Turner to be the face whereas transferring hundreds of thousands in presale funds from retail buyers through Middle Eastern OTC brokers.”

ZachXBT later added that BlockDAG blocked him on X and deleted his replies, stating, “Update: BlockDAG Network blocked me and hid my reply naming the precise founder.”

When requested for proof, he cited offshore entity paperwork and claimed that the title “Gurhan Kiziloz” was banned in BlockDAG’s Telegram group, the place any point out allegedly outcomes in automated deletion or consumer restriction.

The allegations come as questions surrounding BlockDAG’s legitimacy intensify. The undertaking, which claims to merge Directed Acyclic Graph (DAG) expertise with Proof-of-Work mining for larger scalability, has drawn consideration for its unusually long-running presale.

Initially scheduled to finish in June, then delayed to August, the token launch is now postponed indefinitely.

Despite claiming to have raised greater than $430 million since early 2024, the undertaking has but to ship a mainnet or verify any alternate listings.

Concerns about deceptive advertising have additionally surfaced. In July, BlockDAG introduced that its presale would finish on August 11 at a token value of $0.0016, calling it the “final probability” for patrons.

However, months later, tokens are nonetheless being offered at decrease costs, and the presale continues.

Critics counsel this might be a deliberate tactic to maintain hype and appeal to new buyers whereas avoiding a public launch.

Audit Gaps, Presale Delays, and User Complaints Cast Shadow on BlockDAG’s Operations

BlockDAG’s official supplies state that the undertaking is operated by DAG Systems Ltd., registered in Seychelles. The workforce is led by Antony Turner, a fintech entrepreneur, together with CTO Jeremy Harkness and safety professional Dr. Youssef Khaoulaj.

The firm’s web site claims that the undertaking has been audited by Halborn and CertiK, although each corporations reportedly reviewed solely the vesting contracts and never the mainnet itself.

The undertaking’s whitepaper outlines bold technical targets, together with 10,000 transactions per second and an EVM-compatible launchpad for decentralized functions.

It additionally particulars its token allocation: 50% to miners, 33.3% to presale individuals, and simply 1% to the workforce. The workforce has promoted a “highway to Binance itemizing,” however no official alternate partnerships have been confirmed.

Source: CryptoNews

Trustpilot critiques replicate rising skepticism, with almost 60% of customers score the undertaking negatively. Several customers have complained about repeated launch delays and inconsistent communication from the workforce.

The absence of verifiable progress studies, mixed with the continued presale, has amplified fears that BlockDAG might be working extra like a high-yield funding scheme than a authentic blockchain initiative.

Gurhan Kiziloz’s Troubled History in Fintech and Crypto

The controversy surrounding Gurhan Kiziloz additional complicates BlockDAG’s picture. Kiziloz, a self-described tech entrepreneur, beforehand based fintech startup Lanistar, which faced a regulatory warning from the UK Financial Conduct Authority (FCA) in 2020 for working with out authorization.

The FCA warning was later retracted, however the firm continued to face allegations of mismanagement, unpaid wages, faux critiques, and poisonous office tradition.

Kiziloz was additionally involved in the cryptocurrency undertaking Big Eyes Coin, a meme token that raised over $40 million in 2023 earlier than collapsing shortly after launch.

Investors accused the workforce of deceptive advertising, lack of transparency, and failing to ship bought tokens.

Beyond fintech, Kiziloz heads Nexus International Holdings, which runs the crypto-integrated on-line on line casino model Spartans(.)com and operates gaming platforms corresponding to Megaposta.

While these ventures have generated vital income, his historical past in each crypto and fintech has drawn scrutiny due to repeated controversies and questions on investor safety.

As of mid-October, BlockDAG continues to promote its “Value Era” advertising marketing campaign, insisting that it’s coming into a brand new part of improvement.

However, the timing of ZachXBT’s revelations has solid critical doubt over the undertaking’s management and the integrity of its presale.

The put up BlockDAG’s $433M Presale in Crisis After ZachXBT Links Founder to Past Scams appeared first on Cryptonews.

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