In a class action lawsuit filed against the Boneheads team in Canada, independent blockchain investigator ZachXBT’s research has been cited. The lawsuit accuses the Boneheads team of breach of contract, misappropriation of funds, and misleading investors. According to court documents, the team allegedly disappeared after swiftly spending the mint funds on Bored Ape Yacht Club NFTs, luxury goods, and other items, without fulfilling the roadmap promised to investors.
The Boneheads team faces allegations of failing to deliver on the project’s roadmap, conducting fraudulent misrepresentation, and negligent misrepresentation. The lawsuit claims that purchasers of Boneheads NFTs have not received any of the promised benefits, such as NFT airdrops, tokens, physical collectibles, marketplace access, forging, avatar application, voting rights, giveaways, and more.
ZachXBT’s Role in the Lawsuit
ZachXBT’s investigation into the Boneheads project played a crucial role in the filing of the lawsuit. The investigator’s Twitter thread from July 14, 2022, exposed the alleged misappropriation of funds meant for the project’s development. It also identified key individuals involved in the project and their questionable actions.
Responding to ZachXBT’s posts, the Boneheads team claimed that their slow progress was intentional and denied any fraudulent activities. They had announced the release of a new collection called “21” in August 2022 but failed to deliver on this promise.
ZachXBT’s Previous Contributions
ZachXBT’s research has previously contributed to legal actions against bad actors within the NFT space. Their investigation led to the seizure of Ether and NFTs worth $100,000 from a phishing scammer by the FBI. Additionally, their work assisted France’s national cyber unit in apprehending and charging a group of alleged phishing scammers who had stolen $2.5 million worth of NFTs.
This class action lawsuit and ZachXBT’s research highlight the ongoing challenges and risks associated with fraudulent practices in the NFT market. It underscores the need for increased accountability and due diligence to protect investors from rug pulls and other scams.