ZachXBT, a crypto-sleuth, was served with a defamation suit: details
ZachXBT, a cryptocurrency investigator renowned for his tenacious search for suspected financial irregularities in the sector, finds himself in the eye of a legal hurricane. He had previously looked into the businessman Jeffrey Huang, and in an unexpected turn of events, Huang sued him for defamation.
ZachXBT accused Huang, a Taiwanese-American musician and technical executive also known as Machi Big Brother, of embezzling a staggering amount of 22,000 ETH, or about $37.8 million, from a now-defunct crypto-treasury management platform in June 2022, according to the allegation.
This instance is particularly noteworthy because ZachXBT carefully supported his statements with mounds of verifiable material online, giving his allegations credibility.
ZachXBT Discloses Alleged Bitcoin Theft Scandal
A complex web of accusations around a now-defunct cryptocurrency treasury management platform that Huang co-founded are at the center of this argument. ZachXBT charged Huang with stealing a stunning 22,000 ETH (approximately $37.8 million at the time) from the platform’s funds in a piece that was published last year.
The story describes how Formosa Financial co-founder George Shea allegedly removed 11,000 ETH from the project’s treasury, causing it to crash violently.
According to ZachXBT investigation, the treasury withdrawals were swiftly distributed across numerous wallet accounts, one of which also got money from an ENS domain linked to Harrison Huang.
By putting all the pieces together, the crypto investigator discovered that these addresses were connected to Jeff Huang/Mithril, which finally accused him of money laundering.
The on-chain researcher provided strong blockchain evidence to support his assertion, emphasizing the influx of ETH angel/private rounds of multisig money up to two withdrawals of 11,000 ETH by Jeff and George on June 22, 2018.
Huang retaliated by initiating a libel lawsuit against ZachXBT in order to harass the crypto investigator. Huang alleges that the detective’s unfounded accusations damaged his reputation beyond repair.
A year ago, @zachxbt published a Medium article about me that damaged my reputation.
— Machi Big Brother (@machibigbrother) June 16, 2023
Today, I have filed a defamation lawsuit against him in the United States District Court for the Western District of Texas.
I’m going to Twitter nowFor the purpose of holding the online investigator liable for the alleged harm, Huang has made it known that he intends to file a lawsuit.
ZachXBT stands firm and prepares for a court battle
1/ It’s unfortunate I have to make this thread but I am being sued by MachiBigBrother for an article I published in June 2022.
— ZachXBT (@zachxbt) June 16, 2023
Today Machi filed the defamation lawsuit. The lawsuit is baseless and an attempt to chill free speech. I intend to fight back & defend free speech. pic.twitter.com/anVY6zXU5a
ZachXBT vigorously refuted the claims made in the lawsuit. deem the claim to be “unfounded” and a violation of the right to free speech. ZachXBT claimed that he would not be silenced and declared his intention to fight back against the lawsuit.
Along with Jess Meyers and the team at Brown Rudnick, I’m honored to represent @zachxbt in his ongoing mission to speak truth to power. https://t.co/Hu2gBlcZD3
— Palley (@stephendpalley) June 16, 2023
ZachXBT Receives Legal Representation From Brown Mine, a reputable Boston law practice, taking the essential actions to safeguard your company.
Notably, the Bahamas government had earlier hired the company to provide advice on FTX’s demise. Additionally, they won Johnny Depp’s claim for libel against Amber Heard, demonstrating their success in well-known libel cases.
