**Crypto Sleuth ZachXBT Faces Defamation Lawsuit as Community Raises $700K**
In a recent turn of events, crypto sleuth ZachXBT has been sued for defamation by Jeffrey Huang, also known as MachiBigBrother on Twitter. The lawsuit stems from an investigative article written by ZachXBT in 2022. However, ZachXBT maintains that the lawsuit is baseless and an attempt to suppress free speech. Despite the legal battle, the crypto community has rallied behind ZachXBT, raising over $700,000 in support.
**Community Support and Fundraising Efforts**
Since ZachXBT called for donations, a wallet designated as Zachxbtlegalfund has received an overwhelming amount of support. To date, over 500 donors have contributed more than $690,000 in various cryptocurrencies. Ethereum and stablecoins make up the majority of the donations, but there have also been contributions in memecoins like PEPE and others.
Notable contributors to the legal fund include Tron’s Justin Sun, who donated $10,000 TUSD, Kraken’s Jesse Powell, with $17,000, and Memeland, who donated $11,800. Additionally, one generous donor created a ZACH token and directed the transaction taxes to the fund. Even blockchain security firm Certik has made a notable donation.
ZachXBT’s dedication to exposing crypto scams and assisting law enforcement agencies in prosecuting fraudsters has garnered immense respect from the crypto community. The outpouring of support demonstrates the community’s recognition of his valuable contributions.
**The Lawsuit Against ZachXBT**
Jeffery Huang’s decision to sue ZachXBT comes after a Medium article was published in June 2022. The article accused Huang of embezzling 22,000 ETH from Formosa Financial in 2018. ZachXBT’s investigation into Huang’s crypto ventures revealed a history of questionable projects that turned out to be pump-and-dump schemes. The on-chain sleuth further alleged that Huang withdrew 22,000 ETH from the Formosa Financial treasury wallet in 2018.
Huang took to Twitter to defend himself, affirming his belief that the allegations are false and vowing to prove his innocence in court. He publicly stated, “I have consistently maintained that the allegations in his article are false. I look forward to proving through the lawsuit that ZachXBT unlawfully defamed me.”
**Editor Notes: Uber Crypto News**
As the crypto community continues to evolve, stories like ZachXBT’s lawsuit and the overwhelming support he has received highlight the importance of community solidarity. It’s inspiring to witness how individuals can come together to help one another in times of need.
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