Crypto executives, including Changpeng “CZ” Zhao and Jesse Powell, have rallied to fund legal fees for on-chain sleuth ZachXBT, surpassing a $1 million target in donations. ZachXBT, followed by over 400,000 people on Twitter, focuses on blockchain and cryptocurrency investigations. Recently, Jeffrey Huang, widely known as MachiBigBrother, filed a defamation lawsuit against ZachXBT, alleging that he damaged Huang’s reputation by making false claims.
In response to the lawsuit, ZachXBT dubbed it “baseless” and an “attempt to chill free speech.” He also set up a donation wallet address, as his legal fees could “easily exceed” $1 million. Support poured in, with high-profile crypto executives stepping in to help. CZ, the CEO of Binance, praised ZachXBT for his transparency and pledged to contribute $50K to his legal fund. Powell, co-founder of crypto exchange Kraken, expressed his gratitude to ZachXBT for his work and donated 10 ETH (approximately $17,294.30).
The legal battle highlights the expensive nature of defending against defamation lawsuits in a world where the internet has allowed false accusations to spread widely and quickly. Crypto enthusiasts are likely to face similar issues in the future, which makes this situation both noteworthy and concerning. ZachXBT’s legal battle is one of many in the increasingly intricate web of cryptocurrency and blockchain-related lawsuits.
Despite the risks and challenges, high-profile support for ZachXBT demonstrates the importance of on-chain investigations in keeping the crypto industry transparent. The funding from prominent crypto figures is indicative of the camaraderie within the space to defend against baseless accusations and safeguard its future. The implications of this case could be far-reaching, and the outcome is yet to be decided. However, it’s evident that the fight for transparency within the crypto sphere continues to intensify.
Source: Cointelegraph
