The crypto community has recently rallied, with prominent businesses donating over $1 million in various stablecoins and tokens to popular blockchain investigator ZachXBT as they prepare to fight against defamation charges. According to on-chain analytics tool Nansen, ZachXBT’s wallet has received contributions such as USD Coin (USDC), tether (USDT), dai (DAI), and even meme-based tokens like JESUS and PEPE from hundreds of wallets. Among the supporters are crypto exchanges like Binance, security firm CertiK, and Tron creator Justin Sun. Most of these funds were sent to the Ethereum blockchain, with smaller amounts coming from Arbitrum, BNB Chain, Optimism, Polygon, and Fantom-based tokens.
The overwhelming support for ZachXBT could be seen as a sign of trust in the abilities and credibility of independent blockchain investigators. However, it also raises concerns about the influence such large-scale fundraising can have on the outcome of legal proceedings. With substantial financial support, those defending themselves against charges may have access to better legal resources, which could ultimately tilt the balance in their favor.
This recent development stems from a lawsuit filed last week by NFT trader MachiBigBrother, otherwise known as Jeffrey Huang, against ZachXBT. The Independent blockchain detective was sued after publishing a report last year alleging that Huang embezzled tens of millions of dollars’ worth of crypto. The lawsuit, filed in the U.S. District Court for the Western District of Texas, accuses ZachXBT of defamation, causing severe reputational and monetary harm to Huang. The blockchain investigator now faces one count of libel and one count of libel per se, according to the complaint.
In response to the lawsuit, ZachXBT called upon their followers to help support the legal costs associated with fighting the charges – with a fundraising goal of at least $1 million. The overwhelming backing for ZachXBT shows the strong bond within the crypto community and the importance of independent investigators in uncovering potential wrongdoings. However, this also raises the question of how crowdfunding can potentially influence the impartiality of legal processes.
Ultimately, it is crucial to recognize the value of independent investigators like ZachXBT in the rapidly growing crypto space. The lawsuit highlights the importance of a balance between fair scrutiny of industry practices and the potential risks crowdfunding might bring to legal proceedings. In the end, trust in the technology and the community must be maintained, while also ensuring individuals are held accountable for their actions if proven guilty.
Source: Coindesk
