Digital

Crypto Community Rallies Behind On Chain Sleuth ZachXBT in Defamation Lawsuit

Picture Source: BeInCrypto

A defamation lawsuit filed by Jeffrey Huang, better known as MachiBigBrother on Twitter, against renowned on-chain investigator ZachXBT has sparked a strong response from the cryptocurrency community. ZachXBT, who stands accused of defamation, has received an outpouring of support, including significant donations and legal representation offers. The incident has shed light on the crypto community’s appreciation for ZachXBT’s investigative work in exposing scams and aiding law enforcement agencies. In this article, we delve into the details of the lawsuit, the community’s response, and the ongoing battle for free speech in the crypto world.

The Lawsuit and Allegations:

The legal dispute stems from a Medium article published in June 2022, in which ZachXBT accused Jeffrey Huang of embezzling 22,000 ETH from Formosa Financial back in 2018. The article meticulously outlined Huang’s involvement in dubious projects, alleged pump-and-dump schemes, and pointed to on-chain data suggesting the withdrawal of the mentioned amount from the Formosa Financial treasury wallet.

Huang vehemently denied the allegations, asserting that he has consistently maintained their falsehood. Taking to Twitter, he expressed his intention to use the lawsuit to prove that ZachXBT unlawfully defamed him. The legal battle now sets the stage for the examination of evidence and the pursuit of justice to ascertain the truth behind the claims.

Crypto Community Unites:

In response to the lawsuit, the crypto community rallied behind ZachXBT, recognizing his contributions as an on-chain detective who has voluntarily dedicated his time to exposing crypto scams. Following his call for assistance, over $690,000 in various cryptocurrencies has been raised through a wallet named Zachxbtlegalfund, with contributions coming from more than 500 generous donors.

Among the major donors are influential figures in the crypto space, including Tron’s Justin Sun, who contributed $10,000 TUSD; Kraken’s Jesse Powell, who donated $17,000; and Memeland, who generously gave $11,800. Additionally, one donor went a step further by creating a ZACH token and directing the transaction taxes to the fund. Even blockchain security firm Certik showed support by making a notable contribution.

Legal Representation and Community Support:

Boston-based law firm Brown Rudnick stepped forward to offer legal representation to ZachXBT. The firm’s partner, Stephen Palley, announced this development on Twitter, highlighting their experience in the crypto industry, including successfully representing Johnny Depp in a defamation lawsuit against Amber Heard. Brown Rudnick’s involvement strengthens ZachXBT’s position in the ongoing legal battle, assuring him of competent legal counsel.

The overwhelming support ZachXBT has received reflects the community’s deep appreciation for his selfless work. Over the years, his investigative efforts have aided law enforcement agencies in identifying and prosecuting numerous crypto scammers. The willingness of the crypto community to contribute to his legal fund underscores the value placed on preserving free speech and enabling individuals like ZachXBT to continue their vital work.

Conclusion:

The defamation lawsuit filed by Jeffrey Huang against on-chain investigator ZachXBT has sparked a significant response from the crypto community. Through generous donations and legal representation offers, the community has demonstrated its support for ZachXBT and its commitment to protecting free speech. As the legal battle unfolds, the outcome will have implications for the crypto world, emphasizing the importance of open discourse and investigative efforts in combating fraudulent activities. Regardless of the lawsuit’s resolution, the solidarity displayed by the crypto community reinforces the collaborative spirit that underpins the industry’s growth and development.

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