Blockchain Sleuth ZachXBT’s Investigation Cited in $3.1M NFT Rug Pull Lawsuit

The self-proclaimed crypto sleuth ZachXBT‘s investigation of the Boneheads NFT rug pull is cited in a Canada-based lawsuit.

TL;DR

• Crypto detective ZachXBT’s investigation into the Boneheads NFT project’s $3.1 million rug pull is being used in a lawsuit in Canada.
• Boneheads NFT scammers transferred funds to exchange accounts and used the remaining revenue to buy blue chip NFTs.
• The project founders were exposed by ZachXBT, who revealed their identities and their extravagant lifestyles while leaving Boneheads NFT holders stranded.

Why Was ZachXBT’s Investigation Cited in an NFT Rug Pull Lawsuit?

The crypto detective ZachXBT makes headlines again as their $3.1 million NFT rug pull investigation is used in court. In short, Canada has sued the Boneheads NFT project for running away with millions of dollars after scamming its community in 2022.

Notably, the project’s story goes back to 2021, when it launched its debut collection of 10,000 NFTs. Created by an anonymous team, these PFPs sold at 0.1 ETH per piece. Boneheads’ roadmap was filled with giveaways, real-life merch, and Web3 utility to its holders.

These exciting plans and the decent quality of each NFT convinced collectors to buy it. Boneheads minted out shortly after launch – and that’s when the tragedy started.

The project disappeared from all social media pages and the Discord server just a few weeks post-mint. Six months later, ZachXBT investigated where the funds went to expose the NFT rug pull via Twitter.

What Did the Boneheads NFT Scammers Do With the Money?

According to ZachXBT’s investigation, the project founders transferred part of the mint funds to several exchange accounts. Meanwhile, the remaining revenue went into buying blue chip NFTs, including CryptoPunks, RTFKT’s CloneX, or Bored Ape Yacht Club.

However, the founders’ identities were hiding in plain sight: the Boneheads website subscription form included an address in Canada. Using this address, ZachXBT exposed the two co-founders: Alexandra and Ivan.

Surprisingly, Alexandra revealed Boneheads NFT art on her personal Twitter before the project launched. What’s worse, she also bragged about a lavish lifestyle shortly after the project went inactive:

In other words, the project founders lived their best lives while thousands of boneheads NFT holders were left stranded.

After getting exposed, the NFT project contacted ZachXBT and suddenly started posting on social media again to hide the rug pull. However, they failed to deliver their promises once again – and now it’s up to the Canadian court to solve the case.