On May 14, 2026 — the same day BlockDAG launched its BDAG Sparks gambling product — a Brazilian court ordered Tether to freeze $213 million in USDT linked to Gurhan Kiziloz. Kiziloz is the true founder of BlockDAG Network, a fact that was concealed from investors for over two years.
What the court ordered
A Brazilian court issued an order instructing Tether to freeze $213 million in USDT held across 48 wallets identified as linked to Gurhan Kiziloz. The dispute involves two categories of allegations: unpaid gambling taxes from gambling services Kiziloz allegedly operated targeting users in Brazil, and unregistered cryptocurrency token sales claimed to violate Brazilian securities registration requirements. The alleged activity covers the period from 2021 to 2024 — which overlaps precisely with the BlockDAG presale period.
This is a civil tax dispute. No criminal charges have been filed as of the time of writing. Kiziloz and his legal team have stated they are appealing the claims.
Who is Gurhan Kiziloz
Gurhan Kiziloz is the true founder of BlockDAG Network. His identity was not publicly disclosed during the presale. For over two years, Antony Turner served as the public CEO while Kiziloz operated in the background. Kiziloz's name was actively deleted from the official BlockDAG Telegram group — users who typed it had their messages removed.
Turner was fired in December 2025, and Kiziloz's identity was publicly revealed for the first time following the DL News investigation. His previous company, Lanistar, received a consumer warning from the UK Financial Conduct Authority in 2020 and was later liquidated. He has also been linked to Big Eyes, Dogetti and Poorcoin — projects that collapsed after launch.
The timeline connection
The Brazilian court's dispute covers 2021 to 2024. The BlockDAG presale ran from March 2024 through May 2026. ZachXBT previously traced at least $110 million of BlockDAG presale funds through Middle Eastern over-the-counter brokers to accounts on Binance and BTSE. The $213 million freeze represents a separate legal action by a different authority — but the same individual.
Key facts
- Amount frozen: $213,000,000 USDT across 48 wallets
- Ordered by: Brazilian court (civil dispute)
- Allegations: unpaid gambling taxes, unregistered crypto token sales
- Period covered: 2021 to 2024
- Kiziloz status: appealing the claims
- Previously: ZachXBT traced $110M of BlockDAG presale funds to Binance and BTSE
- Previously: Lanistar — FCA consumer warning 2020, liquidated
- Previously: Hidden from BlockDAG investors for 2+ years
The same day as the gambling launch
BlockDAG launched BDAG Sparks — a spin-and-win gambling product — on May 14, 2026. The Brazilian court dispute specifically includes allegations related to gambling services targeting Brazilian users. The timing is coincidental in terms of the court proceedings, which predate the BDAG Sparks launch, but the thematic connection is direct: the same individual is alleged to have run unregistered gambling operations in Brazil and is now launching a gambling product under the BlockDAG brand.
What this means for investors
A court-ordered freeze of $213 million in funds linked to the founder of a project is a material development. If the Brazilian court proceedings advance, the legal exposure could affect Kiziloz's ability to manage BlockDAG operations and assets. The presale overlap means investors who purchased BDAG between 2021 and 2024 were participating in a project controlled by an individual now subject to this action.
We will continue to monitor this story and update the tracker. If you have direct knowledge of the Brazilian proceedings or related wallet addresses, please use the tip line.