Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

On the evening of June 16, Jeffrey Huang, a KOL in the international currency circle, was analyzed by a long article from the well-known KOL ZachXBT. He suspected that Big Brother Ma Ji was related to more than 10 leek cutting projects, and presented the evidence he had collected.

Big Brother Moji then commented on Twitter and clarified that ZachXBT’s revelations were incorrect information:

“This is misinformation. If he wasn’t anonymous, I’d sue him for defamation!”

Below is the full Chinese version of ZachXBT’s investigation report.

brief introduction

Jeffrey Huang, known online as Machi Big Brother, is a former American musician and tech entrepreneur who embezzled 22,000 ETH from Formosa Financial in 2018. In the four years after Baodao Financial collapsed, Jeff successively launched more than ten Token and NFT projects that pump and dump. The following will provide an overview of Big Brother Maggie’s work in the cryptocurrency space, a brief synopsis of Formosa, his follow-up projects, other participants in those projects, and as always – the evidence to prove it.

Over the past year, “Big Brother Maji” (aka Jeff Huang) has made a name for himself in the NFT space as one of the biggest BAYC holders. However, few people know about his dark history in the cryptocurrency field…

background

Huang Licheng, also known as “Big Brother Ma Ji”, is a Taiwanese-American rapper and technology entrepreneur from Taiwan. In 1991, Huang Li rose to fame as a founding member of the pop/rap trio LA Boyz. Active in the early to late 1990s, LA Boyz released 13 albums and became popular in Asia before disbanding in 1997.

After the success of the LA Boyz, Huang Licheng established the hip-hop group “Machi” in 2003 and was successful again. MACHI Entertainment is one of the largest hip-hop/rap record companies in Asia and a subsidiary of “Warner Music Taiwan” founded by Huang Licheng and his partners. Eventually, with the founding of 17 Live’s parent company, 17 Media (M17), Huang Licheng moved from the music industry to the technology industry. Founded in 2015, M17 has grown into one of the most popular live streaming apps in Asia.

In 2017, Huang Licheng and Mithril embarked on a foray into the cryptocurrency space, the first in a series of dubious projects with ambiguous team members, questionable ethical issues, and consistent, mechanical The way of pulling up the delivery method. Next, let’s dive into it.

Project 1: Mithril, MITH

At the end of 2017, Big Brother Maji founded Mithril, a decentralized social media platform that aims to directly reward content creators through its native Token MITH. Mithril conducted a private token sale on February 21, 2018, which raised a total of $51.6 million (60,000 ETH), or 30% of the total token supply. In February 2018, 70% of these private equity tokens were unlocked on TGE, and 30% were unlocked within the next three months. In April 2018, Mithril was listed on the centralized trading platform Bithumb. Until May 2018, these fully unlocked MITH Tokens accounted for 89% of the total circulating supply at that time, and caused huge selling pressure thereafter.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

  Image credit: Binance Research

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

  Mithril Team

Project 2: Formosa Financial

Beginning in early 2018, Huang Licheng worked closely with Taiwanese politicians George Hsieh, Czhang Lin and Ryan Terribilini to create Treasure Island Finance, a vault management platform for blockchain companies. Treasure Island Finance conducted an angel round in the last week of April 2018, raising a total of 22,000 ETH. The private sale round ended on May 31, raising another 22,000 ETH. These sold tokens account for 30% of the total supply. Treasure Island Finance raised a total of $23 million (44,000 ETH). Some high-profile investors are involved, including Binance, QCP Capital, Lemnis Cap, Block One, Miyin/Huang Licheng (remember this), Maicoin, Wilson Huang, Leo Cheng’s Syndicate, Blockstate, and Block One.  

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Equity distribution ratio

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Formosa Team

Investors were promoted to the Token with the promise that FMF would quickly be listed on top cryptocurrency exchanges.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Excerpts from deleted Medium articles

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Excerpt: Token allocation to potential investors in the white paper

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Indicates that it will be listed on Binance

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Big Brother Maji later denied

FMF went live on the decentralized trading platform IDEX in June 2018 and plummeted immediately. It was not until September 2018 that he was listed on the centralized trading platform (IDEX, UEX).

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

The transaction status of FMF Token on the IDEX trading platform

Meanwhile, 17 Media was scheduled to list on the New York Stock Exchange (NYSE) on June 7, 2018, but due to unspecified settlement issues with investors, the IPO kicked off with a $115 million IPO. It was delayed after the plan fell through. ZachXBT reached out to an unnamed source to uncover why:

“The suspension of M17 and its current Private Entity status has nothing to do with regulatory or Citibank blunders.

M17 was ultimately unable to meet auditing and reporting requirements and overcome the bid thresholds on its books because people couldn’t adapt to this business model”

After the failed listing, Huang Licheng expressed his frustration on Facebook and took a swipe at Citibank and Deutsche Bank, both of which were involved in the IPO.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Three weeks after the FMF IC0, the situation of the Baodao Financial project took a turn for the worse. On June 22, 2018, Formosa Financial’s project treasury wallet was withdrawn twice with 11,000 ETH each. Unbeknownst to investors, co-founder Xie Guoliang, as the company’s sole director, promoted bilateral share buybacks on his own.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

2018/06/22 Share repurchase behavior

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

  2018/06/22 Share repurchase behavior

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Transaction Record

Xie Guoliang, Huang Licheng and Yalu Lin have all resigned from their official positions, leaving the remaining co-founder Ryan Terribilini as CEO and Lorne Lantz CTO.  

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Breadcrumbs graph, by ZachXBT

This chart shows the inflow of ETH from the angel/private round into the multi-signature wallet before Huang Licheng and Xie Guoliang twice withdrew 11,000 ETH on June 22, 2018.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

On June 29, 2018, Xie Guoliang transferred 10,500 ETH to the Binance account. The authenticity of Binance account KYC is currently unverified.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

As for Huang Licheng, the 11,000 ETH he withdrew from the wallet did not move for a while thereafter, and it was not until late June and early July that 4,980 ETH, 1997 ETH, 1,400 ETH, 500 ETH, 103 ETH were transferred to various Binance accounts. Of these, 2,000 ETH was sent to czhang.eth and 20 ETH was allocated to an EOA wallet.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

The question remains: Who does the Binance account and wallet belong to? Let’s dig a little deeper and take a closer look at some of these ETH outflows!

1. 4980 ETH outflow from July 26th to July 29th, 2018: Records show that this Binance account frequently inflows from two sources: FTX and littlebang.eth

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

a) If we look up the owner of littlebang.eth on OpenSea, we will see that their username is “Bun919tw”.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Excerpted from Cream Finance Medium article

b) A quick search from Google shows the result: “bun919tw” is actually Bun Hsu, a core engineer at Cream Finance (Cream is another project by Huang Licheng.)  

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

c) Bun Hsu’s Twitter avatar is Boring Ape BAYC #7066, which was given to him by machibigbrother.eth (Jeff’s public wallet).

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Boring Ape BAYC #7066

d) Bun Hsu also happens to trade several Jeff projects such as FMF, SWAG, CREAM, SQUID, PHOON, MCX and MIS/MIC.

Why did a person who is not in the Baodao financial team receive 4,980 ETH only 3 weeks after the IC0, and traded Tokens from other Maji projects and received a BAYC from Maji?

2. Outflow of 2,000 ETH on July 11, 2018: The records on the blockchain show that the transaction has been received by czhang.eth (Czhang Lin). Mr. Lin served as an advisor to Treasure Island Financial until June 22nd.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

a) Three weeks after Czhang received 2,000 ETH, Czhang sent 150 ETH to his brother Lin Yalu (COO of Baodao Finance) on July 22, 2018. 

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Once again, why does the consultant and COO of Baodao Finance charge money to build the project?

3. 1,997 ETH outflow on July 28, 2018: The only money flowing into this Binance account came from harrisonhuang.eth, which frequently interacts with w9g.eth (Wilson Huang), VP of Engineering at Mithril, currently XY Finance and founder of GalaXY Kats.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Wilson sends NFT to Harrison

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

a) For a quick Twitter search for harrisonhuang.eth, we can surmise that this is his Twitter account, since he tweeted his ENS address in response to Wilson.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Links on Twitter

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Harrison is not listed on the Formosa Financial white paper or website as a team member. Once again, there is a pattern of individuals with no public ties to Treasure Island receiving project funding.

The rest of the Binance accounts that received funds from Huang Licheng went to a dead end; these accounts have not had any recent interactions with other external or personal addresses, and the transactions are just movements from CEX to CEX.

On July 26, 2018, Huang Licheng and Mithril were caught trying to cheat in Binance’s monthly Community Coin voting. A user named Lucky found evidence that Mithril’s more than 80,000 votes were funded by only two or three addresses.

The community token voting function is like this: 1 BNB is equal to 1 vote, and each account is allowed to have a maximum of 500 BNB/vote, so a voter can have a maximum of 500 votes by holding 500 BNB. However, in the rules, Binance stated that creating fake accounts and decentralizing BNB in ​​large numbers will automatically be disqualified from the competition.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

During the secret banking operation at that time, Huang Licheng used the same address closely related to Baodao Financial IC0, which held MITH worth $8.6 million. The image below shows a wallet that transferred BNB in ​​bulk, and received ETH as gas from the wallet of Mithril’s largest whale at the time.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Mithril’s Breadcrumbs address flow graph, made by ZachXBT

To make matters worse, the massive amount of BNB used to cheat communitycoin votes happened on the same day that Bun Hsu received 1980 ETH. In fact, his Binance account was deposited less than an hour before the vote.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

When examining on-chain transactions, I found that additional BNB instances were distributed to Binance in smaller amounts (500 BNB or less), consistent with the timeline of the FMF funds being stolen.

1a) 2000 ETH was deposited into Bun Hsu’s Binance account at 3:25AM (UTC) on July 28th.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

1b) 43.8k BNB (presumably Bun) withdrawn from Binance on July 28th (UTC) at 4:43AM

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

2a) 7:08 AM on July 28th, deposit 1994 ETH to Harrison Huang Binance

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

2b) At 7:28 am on July 28 (UTC), withdraw 30,000 BNB from Binance

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Once again, these addresses are linked to Huang Licheng/Meiyin. But unfortunately, this is where most of Treasure Island Financial’s funds are most likely to flow.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Mithril won the vote,

Filter out so-called abnormal votes on Binance,

Again, that’s what Treasure Island Financial’s funds are for.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

This is where they flow:

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

In the fall of 2018, when communications with Licheng Huang, Czhang, and other key members of the FMF team became increasingly alienated, and no proper explanations or project updates were given, token holders began to wonder what was wrong. FMF continued to plummet, with the sudden abandonment of key team members throwing the project into a tailspin.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Wash Trading Bot on IDCM

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Project 3: Machi X

In October 2018, Huang Licheng and Leo Cheng launched Machi X, a trading platform for intellectual property rights, but due to the performance of Huang Licheng’s previous projects, Mithril and Treasure Island financial events, they had difficulty obtaining funds.

Mithril was listed on Binance in November 2018, which coincided with the unlocking of team Token shares. At that point, MITH had fallen by over 80%, and until 2020, team development had been completely abandoned.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

price performance. Source: Coingecko

It wasn’t until more than a year after its launch that Treasure Island Financial’s investors finally understood what was going on with their investments. On August 12, 2019, Baodao Financial investors received an anonymous email saying that just three weeks after the 2018 ICO, 22,000 / 44,000 ETH had been stolen from Baodao Financial’s ICO private wallet. Various internal documents attesting to this were attached to the email.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

In this leaked 2019 recording, former Treasure Island Finance CEO Ryan Terribilini reveals his take on the story of Jeff and George embezzling funds.

I contacted multiple VCs and angels who invested in the project to better understand why they did not take legal action against Licheng Huang and Guoliang Xie. Much of this comes down to the fact that Huang Licheng and Xie Guoliang are seen as powerful figures in Taiwan, and the investors I spoke to were worried about what would happen if they came forward. Others simply don’t want to deal with this mess because what’s happening is happening in multiple jurisdictions. All agree, they just want to forget that this even happened in the first place.

Project 4: Cream Finance

In 2020, the cryptocurrency market is starting to heat up again. Huang Licheng forked the decentralized lending platform Compound Finance in early July 2020, and created Cream Finance with Leo Cheng. Bun Hsu, Jeremy Yang and Stanley Yang are all on Cream’s development team. As of today, over $192 million has been stolen from Cream Finance three times due to technical negligence.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Project 5: Wifey Finance

In August, an “anonymous team” created Yearn Finance’s fork project Wifey Finance, and Big Brother Ma Ji, Leo Cheng and Wilson Huang all happened to be the first members of the Wifey Discord channel. TTransaction records show that Wifey’s deployers sent money to Wilson Huang multiple times. Four days later, Wifey Finance was dumped.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Smart contracts created on 8/8/2020

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Big Brother Maji’s address is one of the earliest transactions

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Machi was one of the first to join the Discord

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Wilson Huang receives funds from Wifey Deployer

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Then Leo Cheng (Lumberg) came along.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

There have been no posts or activity in Discord since August 7, 2020. Wifey has a lifespan of 5 days.

Project 6: Swag Finance

Another project founded by Big Brother Maji, Swag.live is an adult entertainment website that launched governance tokens in early October 2020. When Swag was quietly listed as collateral for Cream Finance, there was quite a bit of controversy on Twitter surrounding the lack of transparency in the listing. Within a few weeks, the token was mined, dumped, and delisted from Cream.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Swag controversy

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

dig and sell

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Swag was removed from Cream, 1.5 months after token launch

Project 7: Mith Cash

On December 30, 2020, Huang Licheng and Mithril came back with a new project: Mith Cash, a fork of the Basis Cash protocol (a stablecoin). Just days after launch, Mith Cash’s Total Value at Hold (TVL) grew to $1 billion before crashing in price as token holders cashed out their rewards. Mith Cash ultimately met the same fate as Basis Cash. Similar to Huang Licheng’s other projects, the team is “anonymous” and Huang Licheng claims he is only a consultant.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

MITH Cash Token price chart. Source: CoinMarketCap

Item 8: Typhoon Cash

Not long after Mith Cash crashed and burned, Big Brother Moji returned again with Typhoon Cash, a fork of Tornado Cash. The Typhoon team claims to have an anonymous team, but it is well known that Huang Licheng and his friends are behind Typhoon. At launch, it was clear that the development was sloppy. Anyone can stake in an anonymous pool and remain anonymous, but in order to receive rewards, it is necessary to stake in the pool. This means that in order to earn rewards, your reward deposits will be doxxed, rendering the concept of anonymous coins worthless. Within weeks of mining starting, the project was abandoned again, with members leaving Telegram and Discord channels ruining it.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Rewkang is one of the first five members of the Telegram group.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Typhoon Cash vulnerability disclosed by Avner and verified by Nick.

example:

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Withdraw address under recipient,

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Unstake and withdraw from the second address.

With no updates posted on Discord, Telegram or Twitter since February 2021, people are getting screwed again.

Project 9: Mud Games

With the sudden popularity of Loot for Adventurers (random in-game assets stored on-chain) at the end of August 2021, Big Brother Moji soon forked his own version, called Heroes of Evermore, soon for anonymous teams made a profit of 533.92 ETH. Unlike Loot, Evermore’s heroes are not random, with anonymous team members quietly minting all of the rarest NFTs in the series without the Evermore holder knowing.  

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Team members Jeff and Penguin have both minted #2 and #3 collections of rare NFTs

Project 10: Squid Game (Squid DAO)

Once again, an “anonymous team” is backing thanks to the launch of the game Squid DAO, an OHM/Nouns DAO fork that appears in October 2021. Among the early holders is MachiBigBrother.eth. By January 2022, the project was closed at Machi’s advice.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Machi votes on tough customs clearance governance proposal

Today, Big Brother Maji has moved to X, XY Finance and recently his latest fork: Ape Finance.

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

XY Finance’s team and advisors

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

X consultants

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Ape Finance

In many of Huang Licheng’s projects, we see the same recurring themes: anonymous teams, forked projects, new wallets funded through FTX, and shorter life cycles. We see the same players in every project, Wilson and/or Leo always hanging out with Big Brother. VCs like Andrew Kang even turn a blind eye. I contacted Andrew in October 2021 and he had this to say:

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Andrew Kang, founder of YFI

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Then in February, Andrew again offered his support to Huang Licheng, even though Cream was nearly dead by then. Sadly, when it comes to money, people turn a blind eye to the obvious rug, especially when the parties involved are hurting others financially at a high cost, whether through 10+ low-effort projects, or by helping to embezzle 22,000 ETH .  

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

Image via PleasrDAO Telegram group

Embezzled 22,000 ETH and launched 10 garbage projects in 4 years

As a courtesy, I contacted Licheng Huang before publishing this article. He emphasized that he was only compensated for being an advisor to Treasure Island Financial, claimed he had no knowledge of the 4,980 ETH paid to Bun or Harrison, and insisted he never cheated in the Community Coin contest. I believe there are too many coincidences between all these projects to be the case.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/embezzled-22000-eth-and-launched-10-garbage-projects-in-4-years/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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