BlockDAG, a cryptocurrency project promising fast blockchain technology, has raised concerns among investors after failing to deliver on promises, including mining hardware and sponsorship deals. The project's website claims $442 million in funds, but its CEO states only about $200 million has been raised, with allegations of unpaid employees and breached contracts. Founder Gurhan Kiziloz's past with controversial fintech Lanistar adds to the scrutiny.
BlockDAG launched its presale in December 2023, attracting thousands of investors worldwide with pitches for specialized mining hardware, BDAG token listings on over 20 exchanges, and sponsorships with major football clubs. Investors like Adam, an Australian restaurateur who invested nearly $25,000 between April 2024 and May 2025, were drawn by promotions including events at Las Vegas' Sphere. "You just bought into it," Adam said, describing the excitement in online communities.
However, many pledges have faltered. Investors report not receiving mining equipment, token allocations being diluted with bonus coins—potentially increasing supply from 50 billion to 90-150 billion—and listings reduced to just five exchanges. At least two football clubs terminated deals due to non-payment: Borussia Dortmund in September 2024 over an unpaid €2,007,444 invoice, Inter Milan in June 2025 for a material breach, and Alpine Racing in November 2025 citing $1.4 million owed, with a deadline of December 3, 2025.
Internal issues compound the problems. Executive assistant Liza Van Den Berg stated that 24 employees are owed over $140,000 for December work. Former CEO Antony Turner confirmed in an email that salaries, miners, and grants went largely unpaid during his tenure, which ended in December 2025 when he was fired for breaching non-disclosure agreements. Nic Van Den Bergh, the new CEO, told DL News the project raised more than $200 million but declined further comment to avoid "unnecessary noise."
Funds totaling at least $110 million went to Binance and BTSE exchanges, $7 million via Bridgers, and $5 million to Mimic, practices criticized by blockchain expert Fabrizio Giabardo: "A blockchain project should be utilising the blockchain with raised funds being stored in an auditable smart contract."
The project's founder, Gurhan Kiziloz, was revealed in a December 29, 2025, AMA after operating anonymously. Kiziloz, 38, previously led Lanistar, which faced UK regulatory warnings in 2020-2021 and liquidation in September 2025. He defended the project: "This project is a matter of honour and pride... anyone that thinks it’s not going to be successful is downright stupid."
Presale is set to end January 26, with mainnet launch a week later, though CTO Jeremy Harkness called the timeline "a little bit aggressive," noting needs for staking, audits, and miner testing. Investor Reid Davis, representing $100,000 in investments, is guiding complaints to regulators like UAE's VARA. GitHub activity shows moderate development but no large network.
