Jeffrey Huang reportedly stole 22,000 ETH and ran more than 10 pump & dump projects
Jeffrey Huang is one of the most NFT holders of the Bored Ape Yacht Club, which has allegedly played 22,000 ETH.
Jeffrey Huang is a tech entrepreneur and former musician. Recently it has been reported that Jeffrey Huang stole more than 22,000 ETH from the treasury management service company Formosa Financial in 2018.
In addition, Jeffrey Huang is accused of having run more than ten pump & dump projects to conduct market-driven behaviors and small investors. Alleged evidence further suggests that Jeffrey Huang and others joined forces to commit these acts.
Jeffrey Huang was formerly famous as a founding member of the pop/trap L.A. Boyz band in the 90s. He then formed the hip hop group “Machi” and the android label “Machi Entertainment.”
Although Huang started his career in music, he turned sideways to technology when he founded 17 Media (M17) in 2015, becoming one of the most popular streaming apps in Asia.
Pump & dump projects run by Jeffrey Huang
Project 1: Mithril
Jeffrey Huang joined the cryptocurrency space in 2017 when he launched Mithril, his first company on a long list of failed crypto projects. Mithril is a decentralized social media site that rewards its original MITH token users.
The project raised 60k ETH (51.6 million dollars) in February 2018, with 30% of the supply sold through a private sale. These tokens will be locked for a period of time, 70% until the Generation Event (TGE) tokens and the remaining number will be unlocked for the next three months.
MITH was listed on Bithumb in April 2018. Only a month later, private sale tokens were fully empowered, allowing investors to withdraw cash. These tokens account for 89% of the circulating supply, causing colossal selling pressure.
Project 2: Formosa
Formosa Financial (FMF) is a fund management platform for blockchain companies, raising 22,000 ETH in angel funding, followed by a private round raising another 22,000 ETH. Binance, Block One, and Mithril/Jeffrey Huang… are typical investors. The “parallel” listing on a top-level centralized exchange is the project’s attraction for investors.
Trading began on IDEX in 2018, and prices declined after that. On June 22, 2018, two 11,000 ETH withdrawals were made from Formosa Financial’s treasury wallet (22,000 ETH in total) with co-founder George Hsieh. Both Huang and the co-founders resigned.
George Hsieh transferred 10,500 ETH to Binance and Huang deposited additional funds into various Binance accounts and wallets. Through on-chain data, it can be seen that many transfers and withdrawals have been made in relation to Huang.
According to ZachXBT, June 22, 2018, was the date Huang and Hsieh sold their share capital in the company. Formosa Financial company records show the share repurchase agreement dated June 22, 2018.
The article also includes a SoundCloud audio clip in which Formosa Financial co-founder Ryan Terribilini tells about what happened to the fund on June 22, 2018.
In the recording, Terribilini said, “I didn’t take the money. George and Jeffrey took the money” at 0:37. Terribilini became CEO of Formosa Financial following the alleged defensive behavior.
“Since I became the director and CEO of the company, no ETH has been lost, so when it comes to what has enabled George and Jeff, I think it is the responsibility of the legal authority.”
Terribilini is currently working with Algorand (ALGO) and Formosa Financial appears to be the only MachiBigBrother project he is involved in.
Project 3: Machi X
Jeff Huang and Leo Cheng founded Machi X in October 2018. This is a social market for intellectual property rights. However, they had difficulty applying for funding because of Jeffrey Huang’s previous Mithril project and the Formosa incident. Almost a year later, Formosa’s investors had been “stripped” by email of their compliance with 22,000 ETH.
Project 4: Cream Finance
In 2020, Jeffrey Huang and Leo Cheng founded Cream Finance (CREAM), a fork of Compound Finance (COMP). Over $192 million was stolen from the project through a mining attack.
Project 5: Wifey Finance
Wifey Finance is forked from Yearn Finance (YFI) and established by the “anonymous” team. Machi, Leo Cheng and Wilson Huang were some of the first members of the Discord project. The transaction records show that the money was repeatedly sent to Wilson Huang during Wifey’s deployment. After 4 days, Wifey Finance is lifted.
Project 6: Swag Finance
In October 2020, the Swag. A live adult entertainment website was launched. When Cream Finance quietly listed Swag as collateral, the lack of listing information triggered many violent reactions on Crypto Twitter. All tokens were farmed, dumped and removed from Cream within weeks.
Project 7: Mith Cash
On December 30, 2020, Mith Cash – fork of Basis Cash protocol (BAC – an algorithmic stablecoin) was launched by the “anonymous” team, with Huang as its advisor. Mith Cash’s total locked-in value (TVL) has risen to $1 billion in just a few days since its release, but there was a serious problem later because the holder withdrew the reward.
Project 8: Typhoon Cash
Typhoon Cash was launched as a fork of Tornado Cash (TORN). The project has an anonymous team, but it is believed that Huang and his associates were behind it. The project was abandoned just a few weeks after starting the farming process.
Project 9: Mud Games
Huang has launched Heroes of Evermore – fork of another popular trophy-based game. The project has an anonymous team and makes more than 533.92 ETH, and teamt. Team members secretly cast the rarest NFT.
Project 10: Squid DAO
Squid DAO was launched by the team “anonymously” as a fork of Olympus DAO (OHM) with Huang as one of the first holders (via the alias MachiBigBrother.eth). Huang stopped the project in January of this year.
The article added that Jeffrey Huang is currently involved in many other projects, including X Finance, X.Y. Finance, and Ape Finance. The blog post pointed to the commonality of all of these as anonymous teams, fork projects, wallets funded through FTX, and short project lifecycles. At the end of the article, ZACHXBT said he had contacted Huang and that he had denied the allegations on the post.
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