ZachXBT flags $25M fund commingling, warns against BlockDSG, ZKP, and Spartans

Crypto Sleuth ZachXBT warned the crypto community on Wednesday against using BlockDAG, ZKP, and Spartans. The Blockchain investigator revealed that he traced $25M in alleged funds commingling from the firms.

ZachXBT stated that the probe on the fiduciary scheme follows up on his earlier warnings about Gurhan Kiziloz. He revealed that he completed on-chain tracing, which demonstrated commingling of at least $25M of pre-sale funds between two investment schemes linked to Kiziloz. The Blockchain investigator also found that the funds were used to pay KOL streamers for the crypto official’s casino called Spartans.

ZachXBT lacks disclosures in the original BlockDAG Network or ZKP pre-sale materials 

The crypto sleuth confirmed that he has not seen any disclosure in the original BlockDAG Network or ZKP pre-sale materials. ZachXBT believes that the disclosures would indicate that the funds would be used to promote a separate venture. 

He also revealed that retail investors are continuing to publish complaints on social media regarding the scheme. Zach believes that the lack of disclosures is another red flag on top of the earlier issues he had disclosed.

Source: ZachXBT. Forensic graph showing BlockDAG and ZKP pre-sale wallets, Spartans’ hot wallets, and KOL payment address.

ZachXBT revealed his forensic graph showing the consolidation of BlockDAG and ZKP pre-sale wallets and the bridge from Ethereum to Tron in CEX deposits and withdrawals. The graph also revealed the Spartans’ hot wallet and KOL payment address.

The crypto forensic investigator previously cautioned on April 9 that those who love to gamble at the new casino, Spartans Bet, should avoid it. He also warned influencers, players, and industry professionals against using the site.

Zach revealed that he was made aware by a few people on the site offering unrealistic amounts of funds to influencers and players. He confirmed at the time that ownership of Spartans Bet was tied to Gurhan Kizloz. He also previously linked Kiziloz to a sketchy crypto project called BlockDAG Network. 

The crypto sleuth alleged that BlockDAG raised more than $300 million from unsophisticated retail investors via social media ads. He also noted that the product stated unsustainable returns and misled partnerships.

Spartans block ZachXBT on X for seeking clarifications

ZachXBT also noted on Wednesday that the Spartans team immediately blocked him on X and hid his replies. He alleged that the team blocked him after he replied to their post seeking clarification.

Zach asked Spartans to explain to the community why there was roughly $25 million of commingling between BlockDAG and ZKP pre-sale funds with Spartans KOL payment addresses on-chain. He also alleged that Gurhan Kiziloz’s projects continued to raise red flags through deceptive marketing, as the number of retail investor complaints on social media surged.

ZachXBT claimed that more than 10 investors have messaged or tagged him claiming to have lost money on BlockDAG Network. The investors also stated that the product was not functional while the token pre-sale had been ongoing for more than 2 years.

Spartans on May 20 thanked the crypto investigator for the alleged free advertisement. The firm revealed that it has given Zach a 30% revenue share on his code for users who sign up for the betting platform.

The crypto sleuth also revealed that Kiziloz was spending very lavishly on luxury cars, real estate, watches, giveaways, and more. He had previously outed the BlockDAG leadership in October 2025 as merely figureheads, but later realized that Kiziloz was secretly the co-founder of BlockDAG.

Cryptopolitan previously revealed on October 29 that Zach disclosed Kiziloz as the co-founder of BlockDAG, who pays people like Antony Turner to be its face. He also claimed that the crypto official was transferring millions in pre-sale funds from unsophisticated retail investors via Middle East OTC brokers.

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