BlockDAG’s $433 Million Presale Faces Credibility Crisis Following Allegations Against Founder

BlockDAG’s $433 Million Presale Faces Credibility Crisis Following Allegations Against Founder

The $433 million presale for blockchain project BlockDAG is facing significant challenges to its credibility after investigator ZachXBT claimed the project's founder has ties to past scams. With an ongoing presale and many unanswered questions, the community is left wondering about the project's legitimacy and future.

Key Takeaways

BlockDAG's presale has raised $433 million but faces credibility issues.
Allegations suggest CEO Antony Turner is a front for founder Gurhan Kiziloz, linked to past scams.
BlockDAG's presale has been extended indefinitely, raising concerns among investors.
Ongoing negative reviews and delays compound skepticism around BlockDAG's operations.

BlockDAG in Turmoil: Allegations of a Hidden Founder

The $433 million presale of the blockchain initiative BlockDAG is now grappling with a credibility crisis. On-chain investigator ZachXBT claimed that the individual marketed as the CEO, Antony Turner, might just be a spokesperson, with real control lying with Gurhan Kiziloz, a British entrepreneur known for previous failures in the fintech and crypto sectors.

The situation escalated when BlockDAG’s official account announced a promotional message stating, "The VALUE ERA Starts Tomorrow," written by Turner. In his message, Turner promised “scarcity, fairness, and real value,” emphasizing that presale bonuses would soon conclude, final tokenomics would be shared, and the official end date of the presale would soon be revealed. He encouraged investors to make "final purchases" before what he called “the moment everything shifts.”

However, shortly after this announcement, ZachXBT publicly responded, claiming that Kiziloz is actually behind BlockDAG, calling him a “grifter.” ZachXBT alleged that he is using Turner as a front to transfer millions in presale funds through Middle Eastern brokers.

In further interactions, ZachXBT noted that BlockDAG had blocked him on X (formerly Twitter) and deleted his statements. When pressed for proof, he referenced offshore entity documents and claimed that mentioning Kiziloz in BlockDAG’s Telegram group was banned.

Presale and Transparency Issues

As concerns over BlockDAG's integrity mount, the project asserts it integrates Directed Acyclic Graph (DAG) technology with Proof-of-Work mining to achieve higher scalability. However, its presale—which was initially set to conclude in June, then postponed to August—now has no clear end date.

Despite claiming to have raised over $430 million since early 2024, BlockDAG has not yet launched a mainnet or verified any exchange listings. Critics highlight that misleading marketing practices have been a pattern; for instance, an announcement in July declared that the presale would close on August 11 at a token price of $0.0016, but tokens are still being sold at lower prices months later.

Gaps in Audit and User Feedback

BlockDAG states it operates through DAG Systems Ltd., incorporated in Seychelles, with Turner, CTO Jeremy Harkness, and security specialist Dr. Youssef Khaoulaj at the helm. Although the project claims to have undergone audits by Halborn and CertiK, reviews reportedly only assessed the vesting contracts and not the overall network.

The project’s ambitious technical goals—such as achieving 10,000 transactions per second and EVM-compatible applications—make the lack of concrete progress all the more troubling. Additionally, the team promotes a “road to Binance listing,” yet no formal partnerships have emerged.

Recent reviews on Trustpilot indicate rising skepticism, with nearly 60% of users expressing negative sentiments. Many users have voiced frustrations regarding continuous launch delays and a lack of communication.

The Troubled Background of Gurhan Kiziloz

The controversy surrounding Kiziloz raises further questions about BlockDAG’s credibility. Previously, he founded Lanistar, a fintech startup that came under regulatory scrutiny from the UK’s Financial Conduct Authority (FCA) in 2020 for unauthorized operations. Although the FCA eventually retracted its warning, Lanistar continued to face allegations of poor management, unpaid salaries, and toxic workplace culture.

Kiziloz was also involved in Big Eyes Coin, a meme token that amassed over $40 million before failing shortly after launch, leading to accusations of misleading marketing and unfulfilled token deliveries.

Outside of these ventures, Kiziloz oversees Nexus International Holdings, which operates crypto-integrated platforms like Spartans(.)com. Despite generating income, his repeated controversies in both the crypto and fintech fields cast a long shadow over his credibility.

As BlockDAG pushes its “Value Era” campaign, the recent revelations by ZachXBT have left many questioning the integrity of the project's leadership and the overall reliability of its presale.