Prominent on-chain investigator ZachXBT has released a detailed report alleging that the BlockDAG and ZKP presale projects mixed at least $1 million in investor funds. The disclosure suggests that capital raised from retail participants was diverted to promote Spartans.com, a crypto casino venture, without prior disclosure to the original contributors. This investigation follows a series of retail investor complaints across social media platforms regarding the lack of transparency in these interconnected projects.
Tracing the Flow of Presale Capital
According to the on-chain tracking data provided by ZachXBT, the movement of funds followed a sophisticated path across multiple blockchains. The investigation identified a specific sequence of transfers involving the projects associated with Gurhan Kiziloz. The flow of assets reportedly moved through the following stages:
- Presale wallets channeled funds into an aggregation address.
- Assets were transferred via an Ethereum-to-Tron cross-chain bridge.
- Funds were deposited into centralized exchanges, including HTX and BTSE.
- Capital was finally distributed to Spartans hot wallets and addresses used to pay Key Opinion Leaders (KOLs).
This complex routing of liquidity is often scrutinized by security analysts as it can obscure the original source of funds and complicate the auditing process for retail participants.
Undisclosed Promotions and Project Risks
The core of the allegation rests on the misuse of investor capital for secondary business interests. ZachXBT noted that the original marketing and technical documentation for BlockDAG and ZKP did not state that funds would be utilized to finance promotion fees for the Spartans.com project. These payments were allegedly directed toward influencers to boost the visibility of the casino venture rather than developing the infrastructure promised in the initial presales.
The original presale materials for BlockDAG and ZKP did not disclose that funds would be used to promote other businesses, while retail investor complaints continue to appear on social media.
The investigator has warned the cryptocurrency community to exercise extreme caution regarding these entities. As of May 20, 2026, the transparency of the financial management within these projects remains a significant point of contention. Market participants are advised to conduct thorough due diligence and monitor on-chain movements when engaging with high-risk presale environments involving centralized leadership.
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