Jeffrey Huang, a tech entrepreneur, former musician, and one of the largest holders of Bored Ape Yacht Club NFTs, allegedly embezzled 22,000 Ethereum (ETH) from treasury management services company Formosa Financial in 2018, according to a recent exposure. from a Twitter detective. ZachXBT.
The Taiwanese-American businessman, known by his online moniker “Machi Big Brother,” reportedly spent the next four years operating “more than ten failed pump-and-dump tokens and NFT projects.” The article also sheds light on his history in the crypto space, the projects and people he has been affiliated with, as well as evidence to prove shady dealings.
22,000 ETH embezzled and more than ten failed projects: the story of Machi Big Brother (Jeff Huang) https://t.co/eAzV9vkoRb
— ZachXBT (@zachxbt) June 16, 2022
Huang initially found fame as a founding member of the pop/rap band LA Boyz in the 1990s. He later founded the hip hop group “Machi” in 2003, as well as the record label “MACHI Entertainment.”
Although Huang started out in the music industry, he later transitioned into the tech space when he founded 17 Media (M17) in 2015, which became one of the most popular live streaming apps in Asia, according to the article.
Mithril – Project #1
Huang entered the crypto space in 2017 with the release of Mithril (MYTH), the first in a long line of failed crypto projects. Mithril was a decentralized social networking site that rewarded users with their native MITH token.
The project raised 60,000 ETH ($51.6 million) in February 2018, with 30% of the supply sold through a private sale. These tokens were locked or locked for some time, 70% until the Token Generation Event (TGE) and the rest unlocked over the next 3 months.
MITH was included in bithumb by April 2018 and just one month later, the private sale tokens had been fully awarded, allowing investors to withdraw money. These tokens made up 89% of the circulating supply, causing enormous selling pressure.
Formosa – Project #2
Financial Formosa (FMF), is a treasury management platform for blockchain companies. 22,000 ETH was raised in an angel funding round, followed by a private round that raised another 22,000 ETH. Investors included Binance, Block One, Mithril/Jeffrey Huang, and more. The selling point for investors was a “fast-track” listing on a top-tier centralized exchange.
Trading started on IDEX in 2018 and the price crashed. Subsequently, on June 22, 2018, two withdrawals of 11,000 ETH were made from Formosa Financial’s treasury wallet (22,000 ETH in total) with co-founder George Hsieh implicated. Huang and the co-founders stepped down from their duties and George Hsieh transferred 10.5k ETH to Binance, with Huang then making incremental deposits to various Binance accounts and wallets. Multiple transfers and withdrawals were made with Jeff implicated through on-chain data.
ZachXBT told CryptoSlate that June 22, 2018 was the same day that Huang and Hsieh sold their stake in the company.
The article also includes an audio clip from SoundCloud where Formosa Financial co-founder Ryan Terribilini tells his side of what happened to the funds on June 22, 2018.
In the audio, Terribilini is heard saying that “I didn’t take the money, George and Jeffrey took the money” at the 0:37 mark. Terribilini became the CEO of Formosa Financial after the alleged embezzlement took place.
“Since the time I became director and CEO of the company, there hasn’t been a single ETH that has been lost, so when it comes to what George and Jeff facilitated on their end, I think that’s really where there’s the responsibility,” Ryan went on to say.
Terribilini is currently working with Algorand (ALGO) and Formosa Financial appears to be the only MachiBigBrother project he has been involved with.
Machi X – Project #3
Jeff Huang and Leo Cheng founded Machi X in October 2018. It is a social marketplace for intellectual property rights. However, they had trouble getting funding due to Huang’s previous project, Mithril, and the Formosa incident. Almost a year later, Formosa investors received an email notice about the embezzlement of 22,000 ETH.
Cream Finance – Project #4
In 2020, Jeff and Leo Cheng founded Cream Finance (CREAM), a fork of Compound Finance (COMP.). More than $192 million has been stolen from the project through exploits.
Wifey Finance – Project #5
Wifey Finance is forked from Yearn Finance (AND FI) and founded by an “anonymous” team. Machi, Leo Cheng, and Wilson Huang are some of the early channel members of the Discord Project. Transaction logs show that Wifey’s implementer sent money to Wilson Huang more than once. After four days, Wifey Finance was abandoned.
Swag Finance – Project #6
In October 2020, the adult entertainment website Swag.live was launched. When Cream Finance quietly listed Swag as collateral, the lack of listing information sparked a huge backlash on Crypto Twitter. The token was farmed, dumped, and removed from Cream, all within a few weeks.
Myth Cash – Project #7
On December 30, 2020, Mith Cash, a fork of Basis Cash (bac) (an algorithmic stablecoin) was launched by an “anonymous” team, with Huang as an advisor. Mith Cash grew to $1b TVL in just a few days after launch, but then crashed as token holders cashed in their rewards.
Typhoon Cash – Project #8
Typhoon Cash was released as a fork of Tornado Cash (TORN). The project had an anonymous team, but Huang and his associates were believed to be behind it. The project was abandoned just weeks after farming began as per protocol.
Mud Games – Project #9
Huang released Heroes of Evermore, a fork of another popular loot-based game. The project had an anonymous team and made more than 533.92 ETH in profit. Members of the team secretly minted the rarest NFTs.
Squid DAO – Project #10
Squid DAO was released by an “anonymous” team as a fork of Olympus DAO (OHM) with Huang among the first headlines (via his alias MachiBigBrother.eth). Huang closed the project in January this year.
The article goes on to say that Jeffrey Huang is now involved in more projects, including X Finance, XY Finance, and Ape Finance. The blog post pointed to a common theme of anonymous teams, forked projects, wallets funded through FTX, and short project life cycles. ZACHXBT ends the article by saying that he reached out to Huang, who denied the allegations in the post.
CryptoSlate has also reached out to Jeffrey Huang to clarify the allegations, but he did not respond at the time of writing.