BlockDAG Under Fire as Investigator Alleges $300M Scam

The allegations level to how aggressive advertising ways can nonetheless attract retail traders regardless of repeated warnings.

Blockchain investigator ZachXBT has publicly known as out BlockDAG Community (BDAG) for allegedly stealing greater than $300 million from unsuspecting retail traders by way of scams that promise them unrealistic excessive features.

The warning was issued in response to a put up by YouTube investigator Coffeezilla, who alerted his followers a couple of promoter that was operating the same scheme.

ZachXBT Exposes A Sample In Crypto Scams

In his X put up, the detective claimed that the net persona had blocked him after he reached out to ask in regards to the 5-10% month-to-month return fee he advertises on his social media.

“For those who invested cash with ERIC MCNEIL, be warned,” wrote Coffeezilla.

One other X consumer below the identify detective weighed in on the scenario, saying that it was stunning to them how most individuals would settle for the speed as affordable. To this, ZachXBT responded by declaring that such low-effort scams had turn into frequent within the trade.

The on-chain sleuth gave the instance of how BlockDAG Community had managed to steal over $300 million from on a regular basis traders by way of high-pressure gross sales ways that tricked traders by way of the promise of a excessive 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!” One other picture additionally reveals BlockDAG making an attempt to create urgency by way of a message studying, “LAST 72 HOURS LOWEST ENTRY EVER at $0.0000022 for 85x on market value.”

BlockDAG’s Historical past of Controversy

This isn’t the primary time BlockDAG has been concerned in the sort of controversy. ZachXBT has been investigating the undertaking for months, along with his earlier findings suggesting a sample of aggressive presale fundraising, deceptive advertising claims, and management points.

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The scandal dates again to just a little 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. On the identical time, the undertaking was saying that it had been listed on a number of exchanges and utilizing sponsored articles in addition to influencer promoting to seem respectable.

Nevertheless, ZachXBT and different analysts have reported that there was no precise buying and selling exercise on-chain to match these itemizing claims. A number of victims have additionally contacted investigators with testimonies exhibiting how they have 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 crew didn’t match its precise working employees.

Investigators have linked the platform’s backend operations to a hidden occasion that was later recognized as Gurhan Kiziloz, the alleged co-founder of Spartans. ZachXBT found that the crew has been holding the token presale for over two years now, whereas additionally off-ramping the funds by way of Center Japanese OTCs.

He added that the tech billionaire has additionally been spending lavishly on luxurious automobiles, actual property, and watches utilizing funds gotten from the rip-off. In the meantime, Kiziloz initially denied any involvement with the undertaking however was later implicated by way of leaked paperwork, pockets particulars, and inner screenshots.