Crypto investigator ZachXBT, known for his tireless pursuit of alleged financial misconduct in the cryptocurrency industry, finds himself at the center of a legal storm. In a surprising turn of events, businessman Jeffrey Huang filed a defamation lawsuit against him.
The accusation stems from ZachXBT’s accusations in June 2022 that Huang, a Taiwanese-American musician and tech executive aka Machi Big Brother, misappropriated a staggering 22,000 ETH, valued at around $37.8 million, from the now-defunct crypto treasury management platform. .
What makes this case particularly interesting is that ZachXBT has meticulously backed up its claims with mountains of concrete on-chain data, lending weight to its assertions.
ZachXBT exposes alleged cryptocurrency embezzlement scandal
At the heart of this dispute lies a complex web of allegations related to a defunct crypto treasury management platform that Huang co-founded. In an article published last year, ZachXBT implicated Huang in embezzling a staggering 22,000 ETH (equivalent to about $37.8 million at the time) from the platform’s treasury.
The article detailed how Formosa Financial co-founder George Hsieh removed 11,000 ETH from the project’s treasury, which subsequently suffered a turbulent collapse.
according to ZachXBT AnalysisThe funds drained from the treasury were quickly distributed across multiple wallet accounts, including one that also received funds from the ENS domain linked to Harrison Huang.
Connecting the dots, the crypto investigator concluded that these addresses were linked to Jeff Huang/Mithril, which ultimately implicated him in the embezzlement of funds.
Bitcoin retakes the $26K territory on the weekend chart: TradingView.com
The on-chain investigator backed up his claims with robust blockchain data, highlighting ETH flows of angel/private round money in multisig ahead of two 11,000 ETH withdrawals executed by Jeff and George on June 22, 2018.
In a retaliatory move, Huang has set his sights on ZachXBT, filing a defamation lawsuit against the crypto investigator. Huang claims that the investigator’s false allegations caused irreparable damage to his reputation.
a year ago, @tweet I posted an article on Medium about me that damaged my reputation.
Today, a defamation lawsuit has been filed against him in the US District Court for the Western District of Texas.– Machi Big Brother (@machibigbrother) June 16, 2023
Go to TwitterHuang publicly announced his intention to take legal action against the on-series detective, with the goal of holding him liable for the perceived harm caused.
ZachXBT stands firm, preparing for the legal battle
1/ It’s unfortunate that I’m making this thread but I’ve been sued by MachiBigBrother for an article I posted in June 2022.
Today, Machi filed a defamation lawsuit. The lawsuit is unfounded and an attempt to stifle freedom of speech. I intend to fight back and defend freedom of expression. pic.twitter.com/anVY6zXU5a
– ZachXBT (@zachxbt) June 16, 2023
In response to the lawsuit, ZachXBT has strongly refuted the allegations, Claim deemed “unfounded” An attempt to stifle freedom of expression. Undeterred, ZachXBT has expressed its determination to resist the legal action, stressing that it will not be silenced.
Along with Jess Meyers and the team at Brown Rudnick, I am honored to represent @tweet In his ongoing mission to speak truth to power. https://t.co/Hu2gBlcZD3
– Bali (@stephendpalley) June 16, 2023
take the necessary measures to defend his case, ZachXBT has obtained legal representation from Brown RudnickBoston-based law firm.
Notably, the company was previously employed by the Bahamas government to advise on the FTX crash. Moreover, they achieved success in Johnny Depp’s defamation lawsuit against Amber Heard, confirming their expertise in high-profile defamation cases.
Featured image (Jeffrey Huang) from Business News – Crast.net
