Popular YouTuber Matthew ‘MatPat’ Patrick uploaded a video on January 24 exposing Smosh owners and MCN Defy Media, claiming that the company stole $1.7 million from its YouTubers.
Defy Media closed its doors without warning in early November of 2018, laying off employees and leaving a number of YouTubers without a leg to stand on.
Many of these YouTubers felt that they had been taken advantage of, with some claiming that their checks had been withheld to settle Defy’s debt before shutting down.
MatPat backed up these claims in a recent video, alleging that Defy had stolen a collective $1.7 million from its YouTubers – and that he had been swindled by an executive just after the birth of his son, Oliver.
“In my case, [money] was taken by someone who I thought I knew,” MatPat stated. “Someone who, only weeks after giving birth to Oliver, hopped on the phone with Stephanie and I and lied directly to our faces knowing full well that he intended to take our money.”
MatPat went on to claim that Defy pocketed pay from its YouTubers to pad their accounts in an attempt to woo investors, after asking to withhold a month’s worth of profit from adsense.
“We found out later… that they kept the money to make their books look better for the investors,” MatPat continued.
Since their shutdown, Defy have been hit with a number of lawsuits from partnered companies and workers alike – with some asking for $100,000 and more in restitution.