BlockDAG Faces $350M Extraction Allegations, Delays Mainnet for Years

According to ZachXBT on May 19, BlockDAG is facing renewed allegations that Gurhan Kiziloz’s projects extracted at least $350 million from retail investors while failing to deliver core promises. The investigator claimed that promised BlockDAG Mainnet infrastructure and mining hardware have not been shipped after years, despite presale marketing promoting potential 300X returns.

BlockDAG reportedly raised between $350 million and $442 million through aggressive presale campaigns during 2024 and 2025. ZachXBT also alleged the project shifted focus toward Spartans, a gambling platform linked to Kiziloz, while investor concerns grew around delayed shipments and incomplete ecosystem rollout.