Research from ZachXBT is Cited in a $3.1 Million NFT Rug-Pull Lawsuit

Investigative work by ZachXBT, an independent blockchain investigator, has played a critical role in a class action lawsuit filed in Canada against Boneheads, an alleged NFT rug-pull that resulted in $3.1 million in losses.

On July 7th, ZachXBT shared details of the lawsuit on Twitter and reiterated the allegations against the Boneheads team. He stated that the team quickly disappeared, misused the funds generated from the project, and failed to follow the promised roadmap. The misused funds allegedly went towards purchasing Bored Ape Yacht Club NFTs, luxury items, and undisclosed expenses.

ZachXBT expressed satisfaction that its research and investigative efforts were once again cited in a legal case, and emphasized the importance of its work in uncovering fraudulent activity.

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ZachXBT’s investigative work has been instrumental in several cases involving malicious actors in the NFT space

The class action lawsuit was initially filed in the Ontario Superior Court of Justice in mid-June. The lawsuit, filed June 19, alleges the Boneheads team breached its contract with investors by failing to follow the project’s roadmap, misusing funds, making fraudulent and negligent misrepresentations, and committing other crimes.

The lawsuit emphasizes that none of the promised benefits, including NFT airdrops, tokens, physical collectibles, market access, forgery, avatar applications, voting rights, giveaways, or other obligations, were fulfilled by the Boneheads NFT team.

ZachXBT’s posts are referenced in the lawsuit and highlight his investigation of the Boneheads project, which he shared on Twitter in July 2022 and in subsequent posts the following month. In his initial Twitter thread, ZachXBT explained how the project allegedly misused funds intended to support the Boneheads roadmap. He also identified key individuals involved in the project and documented their questionable actions.

Despite months of inactivity on social media, the Boneheads team promptly responded to ZachXBT’s posts on Twitter, dismissing the fraud allegations and attributing the project’s slow progress to a deliberate and creative process. They even announced the release of a new collection called “21” for the project’s anniversary in August 2022, but that collection never materialized.

ZachXBT’s investigative work has been instrumental in several cases involving malicious actors in the NFT space. In February, the FBI seized 86.5 Ether and $100,000 worth of NFTs from a phishing scammer as a result of its extensive investigation. In addition, in October 2022, the French National Cyber Unit recognized ZachXBT’s work in supporting its efforts to arrest and indict a group of suspected phishing fraudsters who allegedly stole $2.5 million worth of NFTs.

ZachXBT’s ongoing commitment to investigating fraudulent activity in the blockchain and NFT sectors has been invaluable in exposing wrongdoing and holding those responsible for defrauding investors and participants in these markets accountable. His work serves to protect the integrity of the industry and promote the trust of its participants.

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(Featured image by geralt via Pixabay)

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First published in COIN KURIER, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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