The NFT space’s favorite on-chain tracker, ZachXBT, is back with a new bombshell report, this time about tech entrepreneur and NFT whale Jeff Huang aka Machi Big Brother. The report is the largest ZachXBT has ever written and comes as a full blog post as opposed to the usual Twitter threads. Certainly, ZachXBT comes to some explosive conclusions.
Let’s break down what the blockchain detective found.
First things first – who is Jeff Huang aka Machi Big Brother?
Jeff Huang, known as the Machi Big Brother in the NFT and crypto space, is a tech entrepreneur and former musician from Taiwan. Huang first rose to fame as part of the musical trio LA Boyz between 1991 and 1997. In 2003 he followed with the hip-hop group Machi. From there, Huang and partners founded MACHI Entertainment, a hugely successful Asian hip hop record label.
Huang’s first foray into tech came in 2015 when he founded 17 Media, which later became one of the most popular live streaming apps in Asia. But it is with his first crypto-related venture, Mithril, that ZachXBT claims Huang started some nefarious practices.
Since then, Machi Big Brother has become a huge figure in the NFT space. In fact, he is one of the most notable holders of Bored Ape Yacht Club NFTs.
What is ZachXBT’s Machi Big Brother report about?
As we have come to expect from ZachXBT, a host of evidence accompanies all of the claims and observations in the report. Not only from blockchain transactions, but also from old white papers, Medium articles and news on Discord, Telegram and Twitter.
In the report, ZachXBT attempts to paint a picture of the Machi Big Brother behavior pattern in the crypto space. Specifically, ZachXBT describes Huang/Machi’s involvement in what he calls “patchy projects with dubious team members, questionable ethics, and routine pump-and-dump practices.”
Formosa Financial: the source of ZachXBT’s 22,000 ETH embezzlement claims
Of the nine different Machi Big Brother projects that Zach XBT outlines in the report, Formosa Financial gets by far the most attention. And for obvious reasons.
Formosa Financial was a treasury management platform for blockchain companies. Huang/Machi was founded in early 2018 with Taiwanese politician George Hsieh and a number of other partners. Significantly, Formosa was able to raise two separate funding rounds of 22,000 ETH in April and May 2021 for a total of 44,000 ETH ($23 million).
Alongside a series of allegedly suspicious actions, ZachXBT explains what is obviously the biggest red flag regarding Machi Big Brother and Formosa.
“Three weeks after FMF’s ICO, Formosa Financial took a turn for the worse when on June 22, 2018, two withdrawals of 11,000 ETH each were made from Formosa Financial’s Treasury wallet. Unknown to investors, co-founder George Hsieh has acted as the sole director of the company, pushing a share buyback through himself and executing it on both sides.”
ZachXBT proceeds with various blockchain transaction dates allegedly linking Machi Big Brother to the two 11K ETH withdrawals.
How did people react to the report?
Predictably, Jeff Huang/Machi Big Brother came out on Twitter to refute the report. He even said he would sue ZachXBT for misinformation “if he wasn’t anonymous.” However, he did not find much support for his position on Twitter.
Certainly, ZachXBT’s reputation in Web3 speaks for itself. That said, the on-chain sniffer dog is an extremely trusted voice in space. As a result, the feeling that ZachXBT’s conclusions were correct was overwhelming. To illustrate, most comments on ZachXBT and Machi Big Brother’s tweets congratulated ZachXBT and/or ridiculed Machi Big Brother.
Of course, many will find the report very compelling. Still, it’s important to note that they are not conclusive evidence of any wrongdoing by Machi Big Brother. In fact, the thing about on-chain evidence is that someone still has to interpret what it means. In other words, time will tell if ZachXBT’s conclusions are correct or if there is more to the story.