ZachXBT Warns Users To Avoid BlockDAG, ZKP And Spartans After $25M Fund-Flow Claims

298 views
ZachXBT Warns Users To Avoid BlockDAG, ZKP And Spartans After $25M Fund-Flow Claims

ZachXBT warned users to avoid BlockDAG, ZKP and Spartans after tracing what he described as “$25M of commingling” between BlockDAG and ZKP presale funds and Spartans KOL payment addresses.

The onchain investigator tied the flows to wallets connected with Gurhan Kiziloz and said the latest pattern added to existing concerns around the projects. His post asked why there was “$25M of commingling between Blockdag & ZKP presale funds with Spartans KOL payment addresses onchain,” while adding that Kiziloz-linked projects continue to show red flags.

The allegation centers on presale capital moving across connected wallets rather than a normal project treasury flow disclosed clearly to token buyers. Funds from BlockDAG and ZKP presale wallets were allegedly consolidated, bridged from Ethereum to Tron, routed through exchanges including HTX and BTSE, and later connected to Spartans hot wallets or influencer payment addresses.

The claim is serious because presale investors usually expect raised capital to fund development, liquidity, operations, listings, audits, infrastructure or ecosystem growth. If capital tied to one presale is mixed with another project’s funding route and then used for casino promotion or KOL payments, the risk shifts from poor transparency to a much larger question around investor disclosures and treasury controls.

Spartans Link Deepens Presale Transparency Questions

ZachXBT has been warning about the same network of projects for weeks. In an earlier post, he called Spartans participation “a simple iq test” and criticized the connection between the casino platform, BlockDAG promotion and retail investor fundraising.

BlockDAG has attracted heavy attention because of its long presale period, aggressive marketing and large fundraising claims. ZachXBT previously said the project raised at least $350 million from retail investors while still promoting major upside and while core delivery questions around mainnet, miners and product availability remained unresolved.

The ZKP connection adds a second fundraising channel to the story. ZachXBT’s latest tracing places BlockDAG and ZKP presale money inside the same alleged flow pattern, with Spartans-linked wallets appearing near the end of the route. That gives the warning more weight than a general criticism of marketing language because it points to onchain movement rather than only public-facing promotion.

Presale risk is already one of crypto’s weakest investor-protection areas. Unrealistic return claims, long funding windows, anonymous or partially hidden control, unclear treasury reporting and paid influencer campaigns are common red flags in high-risk token presales. The BlockDAG, ZKP and Spartans claims now put those risks into a sharper fund-flow context.

Retail Investors Face Another Presale Warning

The latest allegations do not equal a court ruling, but they raise the kind of questions that presale buyers cannot ignore. Investors need to know who controls treasury wallets, how funds move between entities, whether marketing payments are disclosed, whether project funds support unrelated businesses and whether token buyers are being shown a complete picture of how their money is used.

ZachXBT’s direct warning is unusually broad because it covers three names at once: BlockDAG, ZKP and Spartans. The reason is the alleged overlap between presale wallets, casino-linked payment addresses and KOL flows. If those connections continue to hold up under public scrutiny, the issue becomes bigger than one questionable campaign or one delayed product roadmap.

The case also shows why onchain tracing can matter in presale markets. Marketing pages can promise scale, partnerships and future upside, while wallet movement can reveal whether money is staying inside the stated project or moving through unrelated channels. That difference is especially important when retail buyers are funding products before launch.

Bitcoin coin symbol
Btc
Bitcoin
$63.148
price
green chart
increase symbol0.2%
price change
TRADE NOW

BlockDAG, ZKP and Spartans now face a clear fund-flow question from one of crypto’s most followed investigators: why did presale-linked money allegedly move into KOL and casino-connected payment routes? Until that question is answered with wallet-level clarity, the warning leaves retail users staring at the same risk that defines the worst presale blowups: big promises up front, unclear treasury movement behind the scenes.

Previous

Plume Secures Bermuda Digital Asset Licence For Regulated Onchain Vaults

Next

ZEST Launch Sniper Pays $343K BNB Bribe And Still Clears $277K Profit

Written by

1618 posts

Born and raised in Romania, currently living in Spain. Iulian discovered a knack for writing from a tender age, won some minor awards for fiction that didn't pay much.

VIEW AUTHOR

Publish your own article

Guest post article. Guaranteed publishing with just a few clicks

START PUBLISHING ADVERTISE WITH US

Browse categories

Explore trending topics in the crypto community right now.

Bitcoin

Coldcard Drain Reaches 1,367 BTC As Galaxy Finds Third Suspected Wave

Galaxy Research identified a third suspected attack wave involving Bitcoin addresses believed to have been generated by vulnerable Coldcard firmware. The latest wave drained 207.7294 BTC, lifting the estimated observed total to 1,367.05 BTC across 4,585 addresses. Galaxy valued the combined transfers at approximately $88.6 million when it published the update. Third Wave Uses Different Transaction Pattern The first two suspected waves followed similar onchain patterns, including a funnel structure that moved funds into a small group of shared collector...

Strategy Opens Door To Roughly $5B In Bitcoin Sales For Reserves And Buybacks

Strategy has opened the door to roughly $5 billion in potential Bitcoin sales under a balance-sheet programme covering cash reserves, preferred dividends, debt interest and securities repurchases. The figure combines up to $1.25 billion for the USD reserve, approximately $1.76 billion in current annual dividend and interest obligations and as much as $2 billion across common and preferred-stock repurchase programmes. The BTC Monetization Program has no expiration date and does not require Strategy to sell any specific amount. Bitcoin Sales...

Coinkite Warns Coldcard Mk3 Users As Block Traces Up To 1,083 BTC In Drains

Coinkite has warned every user who generated a seed on a Coldcard Mk3 running firmware 4.0.1 through 5.0.3 to treat the wallet as potentially exposed and migrate its bitcoin. The security advisory followed research by Block’s Bitcoin engineering and security teams, which identified weak seed-generation behavior while investigating remotely drained wallets. Coinkite’s immediate warning covers Mk3 firmware released from March 2021 onward. The company’s early analysis says Mk4, Q and Mk5 devices are not affected by the issue behind its...

Bitcoin Tests $63,800 Support As Traders Target $67,000 Rebound

Bitcoin recovered above $64,400 on Sunday after briefly slipping below the $63,800 support level watched by technical traders. BTC traded near $64,491, up about 0.6%, after moving between $63,765 and $64,520 during the session. Spot trading volume stood near $14.3 billion over 24 hours, below the levels recorded during last week’s push above $66,000. Ali Martinez identified $63,800 as the immediate pivot, with a sustained hold opening a potential rebound toward $67,000. A breakdown would return attention to the $60,000...

MORE ARTICLES

Ethereum

Triple-A-Linked Wallets Drained Of More Than $9.7M Across Four Chains

Wallets attributed to stablecoin payments firm Triple-A were drained of more than $9.7 million across TRON, Ethereum, Polygon and Arbitrum before the assets were routed to Ethereum. Onchain analyst Specter traced the multichain outflows and linked the affected wallets to Triple-A. The stolen assets were moved through cross-chain bridges and consolidated into 5,227 ETH at an Ethereum address beginning with 0x01F8 and ending with 53b1. The transfers converged on the address after funds moved out of wallets on all four...

Arthur Hayes Wallet Adds $2.53 Million In Ether As Recent Buying Tops $5 Million

A wallet tracked as belonging to BitMEX co-founder Arthur Hayes purchased 1,332.5 ETH worth about $2.53 million early Tuesday, extending a fresh accumulation run as ether traded near $1,900. Lookonchain flagged the purchase roughly three hours after the transaction. The implied acquisition price was about $1,899 per ETH. Hayes had not publicly confirmed the trade at publication. The same tracker recorded a 1,293 ETH purchase worth $2.48 million on July 15. The two transactions added 2,625.5 ETH for approximately $5.01...

BitMine Repurchases 5.5 Million Shares As Weekly ETH Buying Slows

BitMine Immersion Technologies repurchased approximately 5.5 million common shares over the past week as the company shifted capital away from its usual pace of Ethereum accumulation. The shares were acquired at an average price of $15.6156, implying a total outlay of roughly $85.9 million. The purchases were completed under BitMine’s previously authorized $4 billion share-repurchase program. Chairman Tom Lee called the repurchases accretive to shareholder value. BMNR traded near $15.97 on Monday, slightly above the average price paid by the...

BitMine Buys 27,801 ETH As Holdings Reach 5.77M

BitMine Immersion Technologies acquired 27,801 ETH over the past week, lifting its total holdings to 5,770,038 ETH as of July 12. The position represents about 4.8% of Ethereum’s 120.7 million circulating supply, placing the company 96% of the way toward its stated goal of controlling 5% of all ETH. The latest treasury update valued the ETH position at roughly $10.5 billion using a reference price of $1,820. BitMine also held 206 BTC, $482 million in cash and marketable securities, a...

MORE ARTICLES

Trading

How to Get a Funded Crypto Trading Account in 2026 Step by Step

A funded crypto trading account gives a trader access to more notional capital after they prove they can follow a firm’s risk rules. The usual route starts with a paid crypto prop firm challenge that requires a profit target without breaching daily or overall loss limits. Passing is not only about making money. Drawdown control, minimum trading days and rule compliance determine whether the account survives. The evaluation fee can be lost, and crypto prop firms use different account models,...

How To Trade Tokenized Stock Perps: Leverage, Funding And Risks

Tokenized stock perps allow traders to take long or short exposure to companies, ETFs and equity indexes through crypto-native derivatives markets. Positions can use stablecoin collateral, remain open without an expiry date and continue trading when the main stock exchange is closed. The trader receives price exposure, not ownership of the referenced shares. The interface often looks identical to a crypto perpetual futures market. The risk does not. A stock-linked contract can remain active overnight, through weekends and during holidays...

What Is Agentic Trading? AI Trading Agents, Crypto Automation And Risk Controls

Agentic trading is a form of market automation where an AI agent can analyze data, reason through a goal, use tools, prepare trades, and sometimes execute orders through an exchange API, wallet, smart account, broker connection, or onchain protocol. It moves the conversation beyond simple trading bots because the agent is not only following a fixed trigger. It can combine market data, user instructions, portfolio context, and approved tools before deciding what action fits the rules it has been given....

What Are Crypto Data Aggregators? Price, Volume, Token Data, And Market Tracking Explained

Crypto data aggregators turn scattered market information into one usable research layer. Instead of checking separate exchanges, DEX pools, block explorers, wallet dashboards, token pages, protocol analytics, and portfolio apps, users can compare price, market capitalization, trading volume, liquidity, supply, exchange pairs, contract addresses, DeFi activity, and on-chain movement from one place. Crypto markets are fragmented across venues, chains, and token versions, so the same asset can trade on centralized exchanges, several decentralized exchanges, multiple networks, and wrapped or bridged...

MORE ARTICLES

Tech

Strategy Posts $8.22B Q2 Loss As Capital Plan Expands Beyond Bitcoin Purchases

Strategy reported an $8.22 billion net loss for the second quarter after Bitcoin’s decline generated a large unrealized loss across the company’s digital-asset holdings. The company recorded an $8.33 billion operating loss, including an $8.32 billion unrealized Bitcoin loss. Diluted losses reached $24.45 per common share, while net losses attributable to common shareholders totaled $8.62 billion after $400.7 million of preferred-stock dividends. Bitcoin Decline Reverses Strategy’s 2025 Gain Strategy’s second-quarter financial results marked a sharp reversal from the same period...

KOSPI Surges 15% As Korea Unveils $13.9B Strategic Fund

South Korea’s KOSPI surged about 15% to 6,376.68 by midday Friday, recovering a large portion of the losses recorded during a three-day semiconductor selloff. The index climbed as much as 16.8% to 6,531.71 earlier in the session before giving back part of the advance. Samsung Electronics rose about 21%, while SK Hynix gained 24.6%. Both stocks had climbed even further shortly after the opening bell, with Samsung reaching a 22.5% gain and SK Hynix advancing 27.7%. The rebound followed stronger...

KOSPI Falls 8% As July Loss Reaches 35% In Deepening Chip Rout

South Korea’s KOSPI fell 8% on Wednesday, extending its July decline to roughly 35% as another wave of selling hit the country’s largest semiconductor stocks. The benchmark dropped to 5,547.77 by midday in Seoul, its lowest level since April. The Korea Exchange activated a market-wide circuit breaker at 12:33 p.m. after an earlier sell-side sidecar suspended programme trading for five minutes. The circuit breaker requires the index to remain down at least 8% for one minute and halts trading for...

KOSPI Plunges Nearly 10% As Chip Rout Triggers Trading Halt

South Korea’s KOSPI plunged nearly 10% on Tuesday as investors accelerated their exit from the semiconductor stocks that powered the market’s artificial intelligence rally. The benchmark traded near 6,089, down 666 points, after falling as low as 6,031.38. The intraday low placed the index more than 35% below its June record of 9,385.59. The Korea Exchange halted trading in KOSPI-listed shares for 20 minutes at about 10:14 a.m. Korea Standard Time after the decline remained above the 8% circuit-breaker threshold....

MORE ARTICLES