Blockchain investigator ZachXBT has recently been sued for libel by Jeffrey Huang, also known as “MachiBigBrother” on Twitter, after accusing Huang of embezzling funds from a project. The social media post announcing the lawsuit has garnered attention and raised questions about the validity of the allegations made by ZachXBT.
In a Medium post titled “22,000 ETH Embezzled and Over Ten Projects Failed: The Story of Machi Big Brother (Jeff Huang),” ZachXBT accused Huang of launching several failed pump and dump tokens and NFT projects, including treasury management service Formosa Financial. The article also claimed that George Hsieh, a Formosa Financial co-founder, removed 11,000 Ether (ETH) from the project’s treasury, which led to Hsieh’s departure from the project.
According to ZachXBT, the drained funds were sent to several wallet accounts, including one associated with ENS domain harrisonhuang.eth. Based on the provided blockchain data, ZachXBT suggested that Huang was responsible for the draining of funds and stated that Jeff Huang and George made two withdrawals of 11,000 ETH in June 2018.
The lawsuit filed on behalf of Jeffrey Huang in the United States District Court for the Western District of Texas claims that he did not embezzle funds from the Formosa Financial Project. Additionally, it is reported that Huang never had control of any Formosa Financial funds, which makes embezzlement factually impossible. The court document suggests that the most likely explanation for the transfers is that company insiders, rather than an outside advisor like Huang, coordinated the transfers.
The lawsuit also claims that ZachXBT earns money from donations as a result of his work as an on-chain sleuth, which might be the real reason he published the article. In response to the lawsuit, ZachXBT continues to deny these allegations, stating that Huang is trying to “silence” him.
ZachXBT has previously revealed data on multiple crypto scams and exploits, often garnering appreciation for his efforts in exposing the darker side of the industry. However, this recent lawsuit raises concerns about the fine line between providing valuable information and potentially harming individuals’ reputations.
With the proliferation of cryptocurrency and blockchain technology comes an increased need for transparency and accurate information. It remains critical for the community to remain vigilant and differentiate between valuable insights and potentially harmful or misguided accusations. While skepticism might help drive the conversation, maintaining a focus on the collective well-being and growth of the industry should remain paramount.
Source: Cointelegraph
