On Thursday, prominent BAYC NFT holder and Taiwanese musician Jeff Huang, denied allegations of crypto misconduct brought by ZachXBT, a decentralized finance (DeFi) detective.
Jeff Huang who is also known as Machi Big Brother, was accused of malpractice in 10 different cryptocurrency projects. Machi Big Brother possessed a BAYC collection worth an estimated $8.26 million last year.
Machi Big brother denied allegations in a tweet saying that it was ‘misinformation’. He also said that he would have sued the accuser for defamation had it not been anonymous.
In a detailed article, ZachXBT, accused Machi Big Brother of 22,000 ETH embezzlement from Formosa Financial(FMF) in 2018. ZachXBT further elaborated how Jeff went on to issue over ten failed pump-and-dump tokens and NFT projects, since the fall of Formosa Financial.
ZachXBT also wrote a tweet, “People like @machibigbrother @w9geth @bun919tw @Rewkang @lumbergdoteth ruin this space and give it a bad rep. I urge everyone in the community to avoid any project they touch going forward. We all joke about influencers like Moon Carl but in reality these people are 100x worse.”
ZachXBT explained how 22,000 ETH were raised during the initial coin offering (ICO) for tokens of FMF. Following the ICO, FMF tokens quickly dropped in price, partly because of the serious crypto bear market during that time.
Jeff Huang served as an advisor at the firm before eventually giving up his position. In 2019, Taiwanese news firm Block Tempo reported that Formosa Financial merged with the Philippines-based crypto exchange CEZEX and the ICO crowdfund syndicate Katalyse.io.
The article mentions that three weeks after the FMF ICO, on June 22, 2018, two withdrawals of 11,000 ETH were done from FMF’s treasury wallet. Around this time, several executives at FMF apparently issued a share buyback of the firm.
ZachXBT also made allegations regarding the outflows of the 22,000 ETH. The ‘detective’ said that the funds first went to George Hsieh (FMF’s former CEO) and Jeff Huang.
Later the crypto assets then shifted to wallet addresses allegedly connected with their associates. Note that ZachXBT did not provide evidence as to how they came to associate the ‘said’ addresses with Jeff and George.
As per the on-chain data, two withdrawals of 11,000 ETH seemingly took place from FMF’s treasury on June 22, 2018. To have a link between a blockchain transaction and a real-world receiver, either additional know-your-customer data or that of doxing would be needed.
But no such proof has been provided by ZachXBT.
ZachXBT concluded his analysis by saying that he reached out to Jeff before releasing the article. Huang restated that he was just compensated for his ‘advisor role’ at FMF.
Jeff also claimed that he is not aware of the 4980 ETH payment to Bun or Harrison, and he maintains that ‘Mithril never cheated in the Community Coin competition’.
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