Overview
Blockchain investigator ZachXBT, well-known for exposing suspicious transactions, is currently embroiled in a legal dispute. He is facing a defamation lawsuit from Jeffrey Huang, a prominent figure in the crypto industry who goes by the name MachiBigBrother. The lawsuit stems from allegations made by ZachXBT in an article published in June 2022, where he accused Huang of embezzlement and involvement in failed projects. In response, ZachXBT created a donation wallet to cover his legal expenses, and the cryptocurrency community showed overwhelming support.
The Legal Battle
The legal battle between ZachXBT and Jeffrey Huang began when ZachXBT published an article titled “22,000 ETH Embezzled and Over Ten Projects Failed: The Story of Machi Big Brother (Jeff Huang).” In the report, ZachXBT accused Huang of orchestrating multiple pump-and-dump schemes and unsuccessful NFT projects. Huang filed a lawsuit against ZachXBT, claiming slander and baseless accusations that harmed his reputation. However, the specific details of the claims were not disclosed by Huang.
The lawsuit was filed on 16 June in the U.S. District Court for the Western District of Texas, claiming that ZachXBT had defamed MachiBigBrother and caused significant harm to his reputation and finances. The complaint states that ZachXBT faces one count of libel and one count of defamation per se. According to the complaint, MachiBigBrother’s lawyer noted that ZachXBT published the defamatory article on Medium.com without considering the devastating consequences it could have on the accused individual. Additionally, it was alleged that ZachXBT deliberately promoted the article to his extensive following of over 300,000 Twitter users.
Crypto Community to the Rescue
The crypto community rallied behind ZachXBT after he shared a thread on Twitter highlighting the lawsuit. On June 17, ZachXBT created a donation wallet to gather funds for his anticipated legal expenses, which he estimated could exceed $1 million. Within a day, the donations surpassed that amount, indicating a remarkable outpouring of support. Prominent industry leaders like Changpeng “CZ” Zhao, the CEO of Binance, and Jesse Powell, the co-founder of Kraken, made substantial contributions to ZachXBT’s legal defense.
Changpeng Zhao praised ZachXBT for his commitment to transparency in the industry and pledged $50,000 towards the legal costs. Similarly, Jesse Powell appreciated ZachXBT’s work and donated 10 ETH, equivalent to around $17,300. These notable contributions highlight the recognition of ZachXBT’s valuable contributions to the industry and the crypto community’s willingness to support individuals dedicated to transparency.
ZachXBT perceives the lawsuit as an effort to stifle free speech and remains resolute in his investigative pursuits. He considers the legal action against him to be baseless and is determined to uphold transparency within the industry.
Closing Thoughts
Renowned as an “on-chain sleuth,” ZachXBT frequently shares the outcomes of his investigations through Twitter threads and blog posts on Medium. His detective work has resulted in real-world arrests and gained significant attention on social media. The overwhelming demand for his investigative services became so immense that he had to cease accepting community requests to probe illicit activities in the crypto world back in March’23.
The tremendous response to ZachXBT’s appeal on social media underscores the solidarity of the crypto community and their acknowledgment of his valuable contributions to the industry. Despite the lawsuit revealing his previously anonymous identity, the financial support showcases the willingness of the crypto community to assist those dedicated to making a positive impact. As the legal battle unfolds, the outcome will likely shape the future of transparency in the crypto industry and the role of investigators like ZachXBT.
