Inside BlockDAG’s $442 Million Crypto Maze of Missing Miners, Unpaid Employees, and Breached Contracts
By Liam Kelly | 15 January 2026
An exclusive investigation by DL News reveals a tangled web surrounding BlockDAG, a crypto startup that has solicited hundreds of millions in investment but now faces widespread allegations of missing mining equipment, unpaid staff, and broken sponsorship deals.
A Promising Project Turns Murky
BlockDAG was launched in December 2023 as an ambitious ultra-fast layer 1 blockchain project secured by specialized cryptographic mining hardware. Founder Gurhan Kiziloz, previously known for his involvement with controversial fintech firm Lanistar, aimed to attract thousands of investors worldwide with flashy marketing campaigns — including high-profile sponsorships with international football clubs and slick appearances at venues like Las Vegas’ Sphere arena.
Adam (a pseudonym), a 47-year-old restaurateur from Australia and one of the thousands of investors in BlockDAG, shared his experience with DL News. Over 22 transactions between April 2024 and May 2025, Adam invested nearly $25,000, drawn in by promises of cutting-edge mining machines and the prospect of BDAG tokens listing on over 20 crypto exchanges.
“You just bought into it,” Adam said. “You join these online communities. We’re all excited and talking about BlockDAG and the potential.”
Discrepancies in Fundraising and Token Allocation
BlockDAG’s website claims it has raised over $440 million since its presale began in December 2023, but CEO Nic Van Den Bergh has admitted the company raised approximately $200 million and declined to provide further details. Investors and insiders told DL News that promised distributions of mining equipment were delayed or never arrived, the number of crypto exchanges listing BDAG tokens shrank to fewer than five, and token allocations were steadily diluted.
An investigation into wallet addresses provided by investors showed approximately $110 million of presale funds moved to crypto exchanges Binance and BTSE. Additionally, about $7 million was traded through Bridgers, a token-swapping protocol, and $5 million deposited in the decentralized finance protocol Mimic. The destination of a large portion of funds remains unclear.
Blockchain fundraising expert Fabrizio Giabardo, founder of Legion—a token fundraising platform—criticized the lack of transparency. “A blockchain project should be utilizing the blockchain with raised funds being stored in an auditable smart contract,” he said. “Otherwise, you’re inviting ill intent.”
Unpaid Staff and Broken Sponsorship Deals
Beyond investor concerns, internal documents and interviews with former employees depicted a company struggling financially. Liza Van Den Berg, a former executive assistant to BlockDAG’s CEO who also managed payroll, told DL News that roughly 24 employees remain unpaid for work done in December 2025, totaling over $140,000. Two employees confirmed not receiving salaries, though DL News could not independently verify these claims.
BlockDAG’s troubles extended to lucrative football sponsorship agreements. Documents revealed that Inter Milan’s exclusive IP rights manager issued a cease-and-desist letter to BlockDAG in August 2025 for breaching contractual obligations after failing to pay millions for sponsorship deals. Subsequently, Inter Milan demanded BlockDAG cease referring to itself as the club’s official blockchain partner.
Similarly, Alpine Racing Limited, the company behind the BWT Alpine F1 Team, sent a legal notice claiming BlockDAG owed $1.4 million in sponsorship fees, with the possibility of terminating the contract if payment was not made by December 3, 2025. ### Founder and Leadership Silence
Despite mounting questions, BlockDAG’s leadership has been notably reticent. CEO Nic Van Den Bergh declined further comment apart from expressing concern that interviews might “create unnecessary noise during a critical execution phase.” Meanwhile, founder Gurhan Kiziloz withdrew from a scheduled interview at the last minute. Requests for comment from other company representatives went unanswered.
Spiraling Tokenomics and Lost Confidence
Initially shrouded in anonymity—common yet viewed skeptically in crypto circles—the project gradually introduced Antony Turner in July 2024 as the public face and CEO. Turner’s industry experience reassured some investors for a time, but tokenomics issues emerged as a major source of concern.
DL News reviewed marketing promotions revealing that BlockDAG began to issue bonus tokens massively exceeding the original presale cap of 50 billion BDAG tokens. “Imagine, buy one coin, get 10 for it,” Adam explained. Investors estimate that between 90 billion and 150 billion tokens may have been sold, massively diluting value.
The project also delayed anticipated token launch events, such as the planned debut at Token2049 in Singapore in October 2025, further eroding investor confidence.
What Lies Ahead?
BlockDAG’s case exposes critical risks for investors in crypto ventures lacking transparency and accountable governance. With over $400 million at stake, unanswered questions about fund distribution, missing mining hardware, unpaid wages, and failed contractual obligations paint a cautionary tale about the potential hazards lurking beneath ambitious blockchain startups.
For investors like Adam and many others around the world, the pressing query remains: “Where’s the rest of the fucking money?”
DL News will continue to monitor developments and provide updates as the BlockDAG saga unfolds.