Bitrabo Editorial
Crypto investigator ZachXBT, widely recognized for his efforts in exposing alleged financial misconduct in the cryptocurrency industry, is now dealing with a legal dispute. Entrepreneur Jeffrey Huang, who had been the subject of ZachXBT’s investigation, has filed a defamation lawsuit against him.
The lawsuit stems from ZachXBT’s claims made in June 2022, accusing Huang, also known as Machi Big Brother, of embezzling 22,000 ETH (equivalent to approximately $37.8 million) from a defunct crypto treasury management platform.
What makes this case intriguing is ZachXBT’s meticulous documentation and support for his allegations with concrete on-chain data, adding credibility to his claims.
ZachXBT Exposes Alleged Crypto Embezzlement Scandal
The dispute revolves around allegations involving a crypto treasury management platform co-founded by Huang. In a previous article, ZachXBT implicated Huang in the embezzlement of 22,000 ETH from the platform’s treasury. The article detailed how another co-founder, George Hsieh, removed 11,000 ETH from the treasury, resulting in the platform’s downfall.
According to ZachXBT’s analysis, the embezzled funds were dispersed across multiple wallet accounts, some of which were connected to Jeff Huang/Mithril, suggesting his involvement in the misappropriation of funds.
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ZachXBT backed his claims with blockchain data, highlighting ETH inflows into the platform prior to the withdrawals made by Jeff and George.
In response, Huang has filed a defamation lawsuit against ZachXBT, alleging that the investigator’s false accusations have harmed his reputation.
A year ago, @zachxbt published a Medium article about me that damaged my reputation.
Today, I have filed a defamation lawsuit against him in the United States District Court for the Western District of Texas.— Machi Big Brother (@machibigbrother) June 16, 2023
Huang took to Twitter to publicly announce his decision to take legal action against ZachXBT, aiming to hold him accountable for the perceived damage caused.
ZachXBT Stands Firm and Prepares for Legal Battle
1/ It’s unfortunate I have to make this thread but I am being sued by MachiBigBrother for an article I published in June 2022.
Today Machi filed the defamation lawsuit. The lawsuit is baseless and an attempt to chill free speech. I intend to fight back & defend free speech. pic.twitter.com/anVY6zXU5a
— ZachXBT (@zachxbt) June 16, 2023
ZachXBT vigorously denies the allegations, considering the lawsuit to be “baseless” and an attempt to restrict freedom of speech. He remains determined to fight back against the legal action, refusing to be silenced.
Along with Jess Meyers and the team at Brown Rudnick, I’m honored to represent @zachxbt in his ongoing mission to speak truth to power.
— Palley (@stephendpalley) June 16, 2023
ZachXBT has enlisted the services of Brown Rudnick, a reputable Boston-based law firm, to handle his case. The firm has previous experience in high-profile defamation cases, further solidifying ZachXBT’s commitment to fighting the lawsuit.
Featured image (Jeffrey Huang) from Business News – Crast.net