By Michael Scott
Court documents reveal that the Boneheads team are accused of hoodwinking investors, misusing funds, and breaching contract.
ZachXBT is an independent blockchain investigator whose investigative output has been relied upon to crack various cases. Such utilization is evident in the case involving Boneheads team for defrauding investors. This case involves a supposed $3.1 million worth of nonfungible tokens (NFT) portraying a rug pull.
ZachXBT Analysis Reveals Boneheads Haste and Diversion of Funds
A July 7 tweet by ZachXBT revealed the lawsuit as it restated allegations that the Boneheads team hastily vanished and utilized the mint funds on different things, including luxury goods, BAYCs [Bored Ape Club NFTs], and additional items that failed to fulfill the roadmap.
ZachXBT claimed this is just another case in which the research has been cited. The initial filing of the lawsuit was done in mid-June by the Ontario Superior Court of Justice.
A claim statement dated June 19 revealed accusations against the Boneheads team for breaching the contract with investors. The statement enlisted failure to offer the project’s roadmap, funds misuse, and carrying out sham misrepresentations and negligent misrepresentation.
The filing shows that as of the claim’s filing date, the Boneheads NFT team has failed to fulfill the promise made to Bonehead NFT buyers of delivering roadmaps. It added that clients had received zero promises made to them in consideration for minting or buying a Boneheads NFT. Examples of the pledges include access to the marketplace, NFT airdrop, avatar application, voting rights, physical collective, giveaway, and other numerous promises.
ZachXBT Twitter Thread Cited in Court Filing
Considering all references to ZachXBT research, the court filing reveals the project’s investigations by the sleuths whose publication on Twitter took place on July 14, 2022. It also reveals the subsequent month’s posts.
ZachXBT’s initial thread explained the alleged misuse of funds intended for Boneheads roadmap’s support by the project. Additionally, ZachXBT revealed how fast the project became inactive following the mint and disclosed that its major players deployed dishonest tricks. Despite months of social media inactivity, the Boneheads team used Twitter to respond to ZachXBT’s posts. It claimed that Boneheads was a consciously slow creative process, not a scam.
ZachXBT Research Proving Reliable to Crack Fraudulent Cases
The filing also added that in August 2022, they would drop the anniversary of 21, a new collection. This date marks the anniversary of their project launch. Further, the release of this kind of collection never took place. ZachXBT’s work has been utilized several times to aid cases against bad actors in the nonfungible tokens space.
A long investigation by ZachXBT in February resulted in the Federal Bureau of Investigations taking hold of 86.5 Ether and NFTs worth $10000. ZachXBT’s work was also cited by France’s national cyber unit in October 2022. In this case, it played a vital role in catching and charging a group of supposed scammers suspected to be involved in the theft of NFTs worth $2.5 million.