Crypto trader MachiBigBrother, also known as Jeffrey Huang, has filed a lawsuit against ZachXBT, an independent blockchain detective, over allegations of defamation.
The lawsuit, filed in the U.S. District Court for the Western District of Texas, accuses ZachXBT of inflicting reputational and monetary harm through a defamatory report published last year. The complaint includes one count of libel and one count of libel per se.
ZachXBT’s report, published on his blog and Twitter, claimed that Huang had embezzled tens of millions of dollars worth of crypto and manipulated crypto markets.
Huang’s lawyer stated that the allegations had a ruinous effect on his client and accused ZachXBT of maliciously promoting the article to his 300,000 Twitter followers.
In response, ZachXBT called the lawsuit a “David and Goliath story” and suggested that Huang’s wealth was being used to silence him. He expressed concerns about the high legal costs involved and asked his followers to donate crypto to support his defense.
The complaint seeks compensatory damages, exemplary damages determined by the court, and reimbursement of legal fees for Huang. ZachXBT has declined to comment, and his lawyer has not responded to requests for comment.
ZachXBT gained prominence in the crypto community for his blockchain data analyses exposing wrongdoing in decentralized finance and Web3 spaces.
His investigations have led to real-world arrests and earned him a significant following on social media. However, he had to halt community requests for investigations in March 2022 due to the overwhelming response.
The defamation lawsuit against ZachXBT raises questions about the boundaries of free speech and accountability within the crypto community. It highlights the potential consequences of making public accusations without substantial evidence.
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