ZachXBT’s research mentioned in Canadian NFT rug pull lawsuit.
The investigative work of independent blockchain sleuth ZachXBT has been mentioned in a class-action lawsuit in Canada against Boneheads, an alleged $3.1 million nonfungible token (NFT) rug pull.
Tweeting on July 7, ZachXBT highlighted the lawsuit and repeated accusations that the Boneheads team “quickly disappeared and spent the mint funds on Bored Ape Yacht Club NFTs, luxury goods, and other items, without fulfilling the roadmap.”
“Yet another case where my research has been cited,” ZachXBT added.
A class-action lawsuit was filed in Canada against the Boneheads team for the $3.1M NFT rug pull. The team quickly disappeared and spent the mint funds on Bored Ape Yacht Club NFTs, luxury goods, and other items without fulfilling the roadmap. Yet another case where my research has been cited. [link to tweet]
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– ZachXBT (@zachxbt) July 7, 2023
The class-action lawsuit was initially filed in the Ontario Superior Court of Justice in mid-June.
According to a statement of claim dated June 19, the Boneheads team is accused of breaching contracts with investors by failing to deliver on the project’s roadmap, misappropriating funds, and engaging in fraudulent and negligent misrepresentation, among other things.
“As of the date of filing of this claim, the Boneheads NFT team has not delivered on a single roadmap promise they had made to Boneheads NFT purchasers,” the claim states, adding:
“Consumers have not received a single NFT airdrop, token, physical collectible, marketplace access, forging, avatar application, voting right, giveaway, or the dozens of other promises that were made to consumers in consideration for purchasing or minting a Boneheads NFT.”
The filing references ZachXBT’s investigation into the project, which was published on Twitter on July 14, 2022, along with other posts from the following month.
In the initial thread, ZachXBT detailed how the project allegedly misappropriated funds meant to support the Boneheads roadmap.
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ZachXBT also revealed how quickly the project became inactive after the mint and identified the key players behind the project as he tracked their suspicious activities.
9/ Other TikTok videos exist of her flexing luxury trips, designer clothes shopping, and a Gwagon all after the project had raised $3.1m. [link to tweet]
– ZachXBT (@zachxbt) July 14, 2022
“Despite months of inactivity on social media, the Boneheads team immediately responded to ZachXBT’s posts on Twitter, claiming that Boneheads was not a scam but a ‘very deliberately slow creative process,'” the claim states, adding:
“They subsequently announced that a ‘new’ collection called 21 would be released on the anniversary of their project launch in August 2022. However, no such collection was ever released.”
ZachXBT’s work has now been utilized multiple times to help build cases against bad actors in the NFT space.
In February, the FBI seized 86.5 Ether (ETH) and $100,000 worth of NFTs from a phishing scammer following an extensive investigation by ZachXBT.
In October 2022, France’s national cyber unit also cited ZachXBT’s work in assisting with the capture and charging of a group of alleged phishing scammers suspected of stealing $2.5 million worth of NFTs.
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