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Home»Web 3»Crypto sleuth ZachXBT sued for defamation
Web 3

Crypto sleuth ZachXBT sued for defamation

2023-06-18No Comments2 Mins Read
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Policy • June 16, 2023, 4:44 PM EDT

A self-described “on-chain sleuth” who goes by the pseudonym ZachXBT has been sued in a Texas court for libel.

The plaintiff is Jeffrey Huang, also known by his alias “Machi Big Brother”, and the lawsuit alleges that ZachXBT made defamatory remarks in a 2022 after which claims that Huang embezzled 22,000 ETH from the crypto management firm Formosa Financial.

The lawsuit argues that the article contained no evidence, stating that “the defendant’s allegations about the plaintiff’s alleged criminal conduct are categorically false.” It says that ZachXBT personally tried to capitalize on the article by attracting clicks, encouraging retweets, and “attracting additional ‘donations’ to fund his lifestyle, all to the detriment of the plaintiff’s reputation.”

The lawsuit says Huang was unsuccessful in his efforts to have the article removed, and he is now seeking a jury trial and damages.

ZachXBT responds to lawsuit

“The lawsuit is baseless and an attempt to curb free speech. I intend to fight back and defend free speech,” ZachXBT wrote Twitteradding that he had set up a donation address to “assist with legal fees associated with the defense of this case, which could easily exceed $1 million USD.”

He posted the wallet’s address to Twitter, and the balance is currently about 33 ETH, or about $57,000, according to Etherscan.

“All EVM chains are accepted and stablecoins are preferred,” wrote ZachXBT, who said any remaining funds would be returned pro rata to contributors.

“This is a classic David & Goliath story,” he wrote. “I understand that Machi is very rich. I am not. He is using his money to try to silence me. I ask for your help so that this does not happen and the truth survives.”

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ZachXBT blacked out his name in a tweet on Friday about the lawsuit, but his legal name is visible in copies of the lawsuit available in public databases.

© 2023 The Block Crypto, Inc. All rights reserved. This article is for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.



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