BlockDAG Network Exposed as Potential Scam: On-Chain Expert ZachXBT's Investigation

BlockDAG Network has been accused of being a fraudulent project by on-chain sleuth ZachXBT. The project has been conducting a presale for over 1.5 years, claiming it is "soon" ending, while allegedly transferring investor funds to exchange accounts and using fake data to boost sentiment. The investigation suggests that BlockDAG Network may be an investment scam.

BlockDAG Network, a cryptocurrency project, has been the subject of recent scrutiny after on-chain sleuth ZachXBT alleged that the project is fraudulent. ZachXBT's investigation suggests that BlockDAG Network may have been conducting a presale for over 1.5 years, claiming it is "soon" ending, while allegedly transferring investor funds to exchange accounts and using fake data to boost sentiment. These allegations have cast a shadow over the project's legitimacy and its ongoing presale.

Despite the allegations, BlockDAG Network has managed to raise a significant amount of funds during its presale. As of late July and early August 2025, the project has raised $371 million, selling 25 billion tokens at a price of $0.0276 [1]. This amount is notable, as it surpasses many other cryptocurrency presales, including Filecoin’s $233 million and Tezos’s $232 million [2]. Analysts have projected a $1 price target post-mainnet launch, which would represent a substantial return for early investors [1].

The project's hybrid Layer 1 architecture, combining Directed Acyclic Graph (DAG) with Proof-of-Work, has been praised for its high throughput, ranging from 2,000 to 15,000 transactions per second, while maintaining security and decentralization [1]. This technical design positions BlockDAG to handle high demand and reduce congestion, an advantage over existing chains like Ethereum [1].

The ecosystem surrounding BlockDAG Network has shown strong early-stage engagement. Over 4,500 developers are building on the platform, with more than 300 decentralized applications in development. The X1 mobile mining app has attracted 2.5 million active users, while 19,000 ASIC miners have been sold, establishing a decentralized and secure network from launch [1]. Strategic partnerships, such as sponsorships with Inter Milan, have also contributed to the project's visibility and investor confidence [1].

However, the allegations of fraud have raised questions about the project's integrity and the sustainability of its growth trajectory. While the presale continues to attract participants seeking high-growth opportunities, the timing of the presale's end and the project's mainnet launch remains uncertain [1]. The project's ability to navigate these challenges and maintain investor confidence will be crucial to its long-term success.

In conclusion, BlockDAG Network's presale has raised significant funds and attracted substantial attention in the cryptocurrency market. However, the recent allegations of fraud have cast doubt on the project's legitimacy and its ability to deliver on its promises. As the presale continues, investors and financial professionals should closely monitor the situation and assess the project's potential risks and opportunities.

References:
[1] https://www.ainvest.com/news/blockdag-presale-reaches-371m-25b-tokens-sold-1-price-target-highlighted-2508/
[2] https://thecoinrise.com/blockdags-373m-raise-makes-it-the-1-presale-in-crypto-history-crypto-analysts-predict-bdag-to-reach-20-by-2027/