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

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

Crypto entrepreneur Jeff Huang allegedly stole 22,000 ETH, ran over 10 failed projects Anthony Clarke · 8 hours ago · 4 min read

Jeff Huang, also known as Machi Big Brother, has been linked to the theft of 22,000 ETH, which is equivalent to $24.2 million, as well over ten failed cryptocurrency projects.

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Updated: June 17, 2022 at 11:55 pm

Cover art/illustration via CryptoSlate

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

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The Taiwanese-American businessman, known by his online moniker “Machi Big Brother,” allegedly spent the following four years operating “over 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’s been affiliated with, as well as evidence to prove the shady dealings.

22,000 ETH Embezzled and Over Ten Projects Failed: 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 named L.A. Boyz in the 90s. He later went on to found 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 transitioned to 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 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.

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

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

Formosa – Project #2

Formosa Financial (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 commenced on IDEX in 2018 and the price slumped. Later on June 22, 2018, two withdrawals of 11,000 ETH were made from the Formosa Financial treasury wallet (22,000 ETH total) with co-founder George Hsieh being implicated. Huang and co-founders relinquished roles and George Hsieh transferred 10.5k ETH to Binance, with Huang later making incremental deposits into various Binance accounts and wallets. Multiple transfers and withdrawals were made with Jeff being implicated via on-chain data.

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

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Company files for Formosa Financial, showing a share repurchase agreement dated June 22, 2018 – image provided by 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 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.

“From the time I became director and CEO of the company, there has not been one ETH that has gone missing, so when it comes to what George and Jeff facilitated on their end, like I think really that’s where the liability stands,” Ryan continued on to say.

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

Machi X – Project #3

Jeff Huang and Leo Cheng started Machi X in October 2018. It is a social marketplace for intellectual property rights. However, they had trouble getting funding because of Huang’s previous project, Mithril, and the Formosa incident. Almost a year later, Formosa investors were tipped off via email about the embezzlement of the 22,000 ETH.

Cream Finance – Project #4

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

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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 some of the first members of the project Discord channel. Transaction records show that money was sent to Wilson Huang more than once by Wifey’s deployer. 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 information about the listing caused a lot of backlash on Crypto Twitter. The token was farmed, dumped, and removed from Cream all within a few weeks.

Mith Cash – Project #7

On December 30, 2020, Mith Cash, a fork of the Basis Cash (BAC) protocol (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 it was released, but then it crashed hard as token holders cashed out their rewards.

Typhoon Cash – Project #8

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

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.

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Squid DAO – Project #10

Squid DAO was launched by an “anonymous” team as a fork of Olympus DAO (OHM) with Huang being on the first few holders (via his alias MachiBigBrother.eth). Huang had the project shut down 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 out a common theme of anonymous teams, forked projects, wallets funded via FTX, and short project life cycles. ZACHXBT finishes off the article by saying he reached out to Huang who denied the allegations on the post.

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

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Analysis

Biggest Movers:  XRP Up By Nearly 15%, As AVAX Climbs To 12-Day High On Friday

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Biggest Movers:  XRP Up By Nearly 15%, As AVAX Climbs To 12-Day High On Friday

XRP rose by nearly 15% during today’s session, climbing to its highest point in over a week in the process. This rise in momentum within the crypto market also saw AVAX hit a 12-day high, following a gain of over 11% on Friday.

XRP

Bullish pressure in XRP intensified on Friday, as prices rose to their highest point in over a week during today’s session.

Today’s surge saw XRP/USD rally to an intraday high of $0.3847, which is its highest point since June 11.

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Overall, prices are currently 13.6% higher than Thursday’s low of $0.3244, and this comes after a marginal breakout of a key price ceiling.

XRP/USD – Daily Chart

This resistance point was at the $0.3800 mark, and was broken as short-term momentum continued to move upwards.

Looking at the chart, the moving average of 10 days (red) confirms this shift in direction, with the trend now heading higher.

In addition to this, the 14-day RSI is tracking at its highest point in over three months, after hitting a high of 50.71 earlier today.

However, this point is also a resistance level, which is why earlier gains have somewhat eased, as some bulls likely liquidated positions.

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Avalanche (AVAX)

AVAX was another notable mover to end the week, as prices moved close to a key mark of $20 on Friday.

Following a slow start to the week that saw AVAX/USD hit an all-time low of $13.53, prices rose to a peak of $19.97 earlier today.

This move saw prices rise by as much as 13% in the day, with bulls attempting to break out of the current ceiling.

AVAX/USD – Daily Chart

Despite this rise in bullish pressure, the resistance of $20 has so far held firm in today’s session, with prices now trading at $19.29 as of writing.

One reason for this might be that we have also seen the Relative Strength Index hit a ceiling of its own.

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As a result of this, we may not see enough bulls re-enter the market to help lead a breakout of the $20 level.

Do you expect AVAX to break out of this resistance this weekend? Let us know your thoughts in the comments.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Analysis

Bitcoin, Ethereum Technical Analysis: ETH On The Cusp Of $1,200 Following Breakout Of Key Resistance Level

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Bitcoin, Ethereum Technical Analysis: ETH On The Cusp Of $1,200 Following Breakout Of Key Resistance Level

Bitcoin edged marginally higher on the last Friday of the month, breaking out of its recent resistance of $21,100 in the process. ETH was also in the green during today’s session, climbing by nearly 5% to move past a price ceiling of its own.

Bitcoin

Following a turbulent week of trading, BTC was once again higher on Friday, as prices moved above $21,000 heading into the weekend.

Less than a day after trading at a low of $20,233.56, BTC/USD rallied to an intraday peak of $21,266.39

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Friday’s flurry of trading saw prices move past a key resistance point of $21,100, and this comes as bulls continue to buy the recent bitcoin dip.

BTC/USD – Daily Chart

After overcoming today’s hurdle, it is likely that traders will target this week’s high of $21,700 over the course of the weekend.

Looking at the chart, should this level be achieved, we will likely see many bulls choose to secure gains and exit positions, due to an upcoming ceiling on the 14-day RSI.

This hurdle is the 36.70 point on the Relative Strength Index, which is currently tracking at 35, and is firmly in oversold territory.

Ethereum

Ethereum was fast approaching $1,200 on Friday, as bullish momentum took prices above a key level of resistance.

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After almost falling below $1,000 during Thursday’s session, ETH/USD surged to an intraday high of $1,191.27 as of writing.

This peak saw the world’s second largest crypto token trade nearly 8% higher than yesterday’s floor, breaking the $1,190 ceiling in the process.

ETH/USD – Daily Chart

As discussed yesterday, this level was one of the only hurdles in place preventing prices from re-entering the $1,200 region.

Today’s mounting pressure from ETH bulls comes after the 35.60 ceiling of the 14-day RSI was broken on Thursday.

With a breakout likely later in today’s session, the only question is where bulls will choose to exercise an exit.

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How high do you expect ETH to climb this weekend? Leave your thoughts in the comments below.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Analysis

Biggest Movers: MATIC Climbs 25%, Re-Enters Crypto Top 20 

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Biggest Movers: MATIC Climbs 25%, Re-Enters Crypto Top 20 

MATIC moved back into the cryptocurrency top 20 on Thursday, as prices rose by over 25% in today’s session. The token replaced FTT, which entered the list following declines in MATIC on Wednesday. ATOM also rose today, hitting a 12-day high in the process.

Polygon (MATIC)

MATIC was one of the standout movers in crypto markets on Thursday, as the token re-entered the top-20 list.

Following a low of $0.4042 on Wednesday, MATIC/USD surged to an intraday peak of $0.5145 earlier today.

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This move saw MATIC become the world’s 18th largest cryptocurrency by market capitalization, all while hitting an 11-day peak.

MATIC/USD – Daily Chart

Despite these gains, it appears that bulls are looking towards the ceiling of $0.6650 as the next price target.

Overall, MATIC has risen by over 25% in today’s session, with its seven-day average now nearing a 30% increase.

In addition to this, the 14-day RSI is tracking at its highest point in over three months, after hitting a high of 48.64 earlier today.

All in all, sentiment seems to be firmly bullish in the short-term, however traders will see if this matures into the mid-term.

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Cosmos (ATOM)

ATOM also rose to an 11-day high on Thursday, as prices rose for a fifth consecutive session.

Following a breakout of its floor at $5.50 last week, which saw prices hit their lowest point since January 2021, ATOM bulls re-entered the market with full force.

As a result of this short-term rise in bullish sentiment, ATOM/USD rose to an intraday peak of $7.73 earlier today.

ATOM/USD – Daily Chart

This gain means prices are now trading nearly 12% higher than yesterday’s lows, sending them to their most valuable level since June 12.

Looking at the chart, this uptake in momentum has meant that the moving average of ten days is now nearing a potential cross with that of the 25-day SMA.

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Should this occur, then we will likely see prices not only reach, but breakout of, resistance at $10.

Do you expect ATOM to break out of this resistance before the month ends? Let us know your thoughts in the comments.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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