In a recent turn of events, prominent on-chain detective ZachXBT is being sued by NFT trader MachiBigBrother, also known as Jeffrey Huang. Huang has accused ZachXBT of defamation for publishing an article last year alleging Huang embezzled tens of millions of dollars worth of crypto from unsuspecting NFT users, according to a Twitter thread initiated by the on-chain detective.
This lawsuit, which was filed on Friday in the US District Court for the Western District of Texas, claims that the article caused significant reputational and monetary harm to Huang. He is charged with one count of libel and one count of libel per se. MachiBigBrother’s lawyer argued in the complaint that ZachXBT published the defamatory article on Medium.com with complete disregard for the potential impact on Huang’s reputation, while also promoting the article to his 300,000+ Twitter followers.
The article in question, titled “22,000 ETH Embezzled and Over Ten Projects Failed: The Story of Machi Big Brother (Jeff Huang),” accuses Huang of engineering over 10 pump and dump schemes and botched NFT projects. An example mentioned is the treasury management service Formosa Financial, where it’s alleged that Huang was involved with co-founder George Hsieh in removing 11,000 Ether from the project’s treasury. The article follows the funds through several wallet accounts and links them back to Huang, eventually blaming him for the misappropriation of funds.
Reacting to the lawsuit, ZachXBT announced their intent to fight back and defend free speech, despite the potential costs that could quickly surpass $1 million. The detective has asked for donations to cover their legal fees and, at the time of writing, has received over $230,000 worth of crypto assets in support.
On one hand, the article’s allegations against Huang could potentially reveal unethical behavior within the industry, prompting valuable discussions about transparency and accountability in the blockchain realm. On the other hand, Huang’s lawsuit raises concerns over the consequences of making such allegations public and how it can impact an individual’s reputation and credibility.
Though the outcome of the lawsuit is uncertain, it emphasizes the importance of responsible reporting and maintaining free speech rights within the crypto community. Well-known for uncovering misdeeds in the decentralized finance and Web3 spaces, ZachXBT’s recent investigation into the $100 million Atomic Wallet hack demonstrates the value of their work. As this legal battle unfolds, it serves as a reminder of the ongoing challenges faced by those advocating for transparency and accountability in the growing blockchain and crypto industry.
Source: Cryptonews
