Key Insights:

• Blockchain detective ZachXBT’s research was crucial in a $3.1M NFT fraud lawsuit against Boneheads in Canada.
• The Boneheads team faces allegations of contract breach, fraudulent and negligent misrepresentation.
• ZachXBT’s investigative work aids in exposing NFT scams, reinforcing the need for careful research in NFT investments.

A groundbreaking revelation has sent shockwaves through the Non-Fungible Token (NFT) sphere, particularly in Canada, where Boneheads, an NFT group, faces a class-action lawsuit. The colossal $3.1 million NFT rug pull claims are largely based on the pivotal research of independent blockchain sleuth, ZachXBT. Significantly, ZachXBT’s investigative work has proven invaluable in such cases before.

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 BAYCs, luxury goods, and other items never fulfilling the roadmap

Yet another case where my research has been cited https://t.co/GoIGmPs50g pic.twitter.com/mboWXt3mfm

— ZachXBT (@zachxbt) July 7, 2023

A Harsh Spotlight on Boneheads NFT Project

ZachXBT’s analysis shed light on the Boneheads team’s alleged misdeeds, sparking the lawsuit filed in the Ontario Superior Court of Justice in mid-June. Research suggests that the team quickly vanished post-mint, spending the proceeds on luxury goods, Bored Ape Yacht Club NFTs (BAYCs), and other unrelated items while failing to fulfil any of the project’s roadmap promises.

The lawsuit accuses Boneheads of breaching their contract with investors and making fraudulent and negligent misrepresentations. The team must still deliver a single promise in their roadmap, including NFT airdrops, tokens, physical collectibles, and marketplace access.

Dissecting ZachXBT’s Vital Investigation

ZachXBT’s groundbreaking Twitter thread from July 14, 2022, provides an in-depth dissection of Boneheads’ alleged improprieties. Besides offering a comprehensive rundown of how the project purportedly misappropriated funds, the sleuth also exposed the swift inactivity following the project’s mint. Moreover, he unveiled the main orchestrators behind the controversial project.

9/ Other TikTok videos exist of her flexing luxury trips, designer clothes shopping, and a Gwagon all after the project had raised $3.1m. pic.twitter.com/cTfJ0YXGt4

— ZachXBT (@zachxbt) July 14, 2022

Consequently, the Boneheads team responded to ZachXBT’s Twitter allegations by defending their inactivity as a ‘very deliberately slow creative process.’ However, no such progression is evident, as they failed to release a ‘new’ collection announced for August 2022, adding to the mounting suspicions around them.

ZachXBT: A Recurring Hero in NFT Fraud Cases

ZachXBT’s research has been cited multiple times, significantly aiding in constructing cases against NFT fraudsters. In February, the FBI seized 86.5 Ether and $100K worth of NFTs from a phishing scammer, partly due to ZachXBT’s diligent investigation.

Additionally, in October 2022, ZachXBT’s work was crucial in assisting France’s national cyber unit in apprehending and charging a group accused of stealing NFTs worth $2.5 million. ZachXBT’s work in revealing the inner machinations of fraudulent NFT operations has made him indispensable in the ongoing fight against NFT fraud.

ZachXBT’s research has become essential in revealing potential fraudulent activity within the NFT market. ZachXBT’s crucial contribution to the case against Boneheads reiterates the need for diligent oversight in this fast-growing sector. It is a stark reminder that while NFTs can offer lucrative opportunities, they’re not immune to scams and fraudulent practices, emphasizing the importance of thorough research before investing.