Lawsuit

Crypto scam investigator ZachXBT, recognized for uncovering fraud in the cryptocurrency sector, is being sued by a former target claiming $38 million in damages. In reply, ZachXBT has hired Brown Rudnick, a well-known law firm that represented actor Johnny Depp in a successful defamation lawsuit.

The legal battle highlights the high stakes in uncovering scams and fraudulent schemes in crypto.

ZachXBT Faces Defamation Lawsuit

Blockchain investigator ZachXBT is facing a defamation lawsuit filed by entrepreneur Jeffrey Huang, also known as Machi Big Brother. This legal action is a direct response to an accusation made by ZachXBT in June 2022, where he alleged that Huang embezzled 22,000 ETH, equivalent to approximately $37.8 million, from a defunct crypto treasury management platform.

ZachXBT, renowned for his on-chain investigations into potential financial misconduct within the cryptocurrency sector, supported his claim with on-chain data.

Defamation Lawsuit Challenges Anonymity in Crypto Community

Jeffrey Huang has filed a federal lawsuit in the US District Court for the Western District of Texas, alleging that the accusations made by ZachXBT are false and seeking damages for the harm caused to his reputation.

A notable development in the case is that Huang and his legal team have uncovered ZachXBT’s legal name and place of residence, previously undisclosed.

This revelation presents a significant challenge to ZachXBT’s anonymity, which has played a crucial role in his position as a prominent figure in the cryptocurrency community.

Crypto Analyst ZachXBT Raises $320K for Defamation Lawsuit Defense

ZachXBT quickly notified his 407,000 Twitter followers about the lawsuit, asserting that it is unfounded and an effort to suppress freedom of speech. He expressed his determination to challenge the lawsuit in court, anticipating significant legal expenses that could surpass $1 million.

To finance his defense, ZachXBT appealed to his supporters to contribute to a dedicated cryptocurrency wallet address.

Within a few hours, the wallet received donations totaling over $320,000 from more than 500 individuals, including various cryptocurrencies and meme tokens.

ZachXBT Hires Brown Rudnick for Defamation Lawsuit Against Huang

ZachXBT has reportedly enlisted the services of Brown Rudnick, a renowned law firm based in Boston, known for its involvement in high-profile cases. The firm notably represented actor Johnny Depp in a successful defamation lawsuit against Amber Heard.

Stephen Palley, a partner at Brown Rudnick, expressed his support for ZachXBT’s commitment to speaking truth to power.

In a Medium article, ZachXBT made allegations against Huang, accusing him of embezzling funds from the Formosa Financial crypto project. The article provided extensive evidence sourced from blockchain data.

However, Huang’s lawsuit disputes ZachXBT’s claims, asserting that they are false and have caused damage to Huang’s reputation. Huang’s legal team suggests that the alleged embezzlement may have been orchestrated by insiders within the company rather than Huang himself.

The lawsuit filed by Huang against ZachXBT seeks compensatory and exemplary damages, along with reimbursement for legal fees incurred. Despite the legal challenge, ZachXBT maintains that the lawsuit is an attempt to silence him and vows to continue speaking the truth.

ZachXBT has gained prominence in the crypto community for his investigations into fraudulent activities and scams in the decentralized finance and Web3 sectors.

His work has led to real-world arrests and established him as one of the most influential figures in the crypto industry.

Despite the potential financial burden of the lawsuit, ZachXBT remains dedicated to his mission of uncovering the truth in the crypto space.

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