Crypto entrepreneur Jeff Huang allegedly stole 22,000 ETH and ran over 10 failed projects

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Jeffrey Huang, a tech entrepreneur, former musician and one of the biggest holders of Bored Ape Yacht Club NFTs, allegedly hijacked 22,000 Ethereum (ETH) from cash management services company Formosa Financial in 2018, according to a recent talk by Twitter sleuth ZachXBT.

The Taiwanese-American businessman, known by his online nickname “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 the shady dealings.

Huang first rose to fame as a founding member of the pop/rap group named LA Boyz in the 90s. He then founded the hip hop group “Machi” in 2003, as well as the record label “MACHI Entertainment”. .

Although Huang got his start in the music industry, he later moved into the tech space when he founded 17 Media (M17) in 2015, which has become one of the most popular live streaming apps. most popular in Asia, according to the article.

Mithril – Project #1

Huang entered the crypto space in 2017 with the launch of Mithril (MITH), his first in a long list of failed crypto projects. Mithril was a decentralized social media site that rewarded users with its native MITH token.

The project raised 60,000 ETH ($51.6 million) in February 2018, with 30% of the supply being sold through a private sale. These tokens were locked or for a while, 70% until the Token Generation Event (TGE), with the remainder unlocked over the next 3 months.

MITH was listed on Bithumb in April 2018 and just a month later, the private sale tokens were fully acquired, allowing investors to cash out. These tokens accounted for 89% of the circulating supply, which caused massive selling pressure.

Formosa – Project #2

Formosa Financial (FMF), is a cash management platform for blockchain businesses. 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 leading centralized exchange.

Trading started on IDEX in 2018 and the price fell. Later, 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 being involved. Huang and the co-founders stepped down from their roles and George Hsieh transferred 10.5k ETH to Binance, with Huang later making additional deposits to various Binance accounts and wallets. Several transfers and withdrawals were made, with Jeff implicated via on-chain data.

ZachXBT told CryptoSlate that June 22, 2018 was the same day Huang and Hsieh sold their stake in the company.

formosa equity
Company files for Formosa Financial, showing share repurchase agreement dated June 22, 2018 – image courtesy of ZachXBT

The article also includes a SoundCloud audio clip where Formosa Financial co-founder Ryan Terribilini tells his version of what happened to the funds on June 22, 2018.

In the audio, Terribilini is heard saying “I didn’t take the money, George and Jeffrey took the money” at 0:37. Terribilini became the CEO of Formosa Financial after the alleged embezzlement.

“Since I became director and CEO of the company, there hasn’t been a single ETH that has gone missing, so in terms of what George and Jeff have been facilitating on their end, I really think that’s therein lies the responsibility,” Ryan continued to say.

Terribilini is currently working with Algorand (ALGO) and Formosa Financial appears to be the only MachiBigBrother project he has been involved in.

Machi X – Project #3

Jeff Huang and Leo Cheng launched Machi X in October 2018. It is a social marketplace for intellectual property rights. However, they struggled to secure funding due to Huang’s previous project, Mithril, and the Formosa incident. Almost a year later, investors in Formosa were notified by email of the hijacking of the 22,000 ETH.

Financing of the cream – Project #4

In 2020, Jeff and Leo Cheng founded Cream Finance (CREAM), a fork of Compound Finance (COMP). Over $192 million was stolen from the project via exploits.

Wifey Finance – Project #5

Wifey Finance is forked from Yearn Finance (YFI) and founded by an “anonymous” team. Machi, Leo Cheng and Wilson Huang are among the first members of the project’s Discord channel. Transaction records show the money was sent to Wilson Huang more than once by Wifey’s deployer. After four days, Wifey Finance was dropped.

Swag Finance – Project #6

In October 2020, adult entertainment website was launched. When Cream Finance quietly listed Swag as collateral, the lack of information on the listing caused a lot of backlash on Crypto Twitter. The token was grown, discarded, and removed from Cream within weeks.

Mith 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 rose to $1 billion TVL just days after release, but then crashed hard as token holders cashed out their rewards.

Typhoon Cash – Project #8

Typhoon Cash was launched as a fork of Tornado Cash (TORN UP). The project had an anonymous team but Huang and his associates were believed to be behind it. The project was abandoned just weeks after protocol farming began.

Mud games – Project #9

Huang launched Heroes of Evermore, a fork of another popular loot-based game. The project had an anonymous team and made over 533.92 ETH in profit. The team members 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 earliest holders (via his alias MachiBigBrother.eth). Huang stopped 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 highlighted a common theme of anonymous teams, bifurcated projects, portfolios funded through FTX, and short project lifecycles. ZACHXBT ends the article by saying that he contacted Huang who denied the allegations on the post.

CryptoSlate has also reached out to Jeffrey Huang for clarification on the allegations, but he has not responded at the time of writing.

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