Crypto Community Donates $1M to Sleuth ZachXBT After Defamation Lawsuit

Backers include the likes of prominent crypto businesses and personalities such as Binance, CertiK and Justin Sun, among others.

AccessTimeIconJun 19, 2023 at 6:17 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto community and prominent businesses have donated over $1 million in various stablecoins and tokens to ZachXBT as the popular blockchain sleuth prepares to fight defamation charges.

Data from the on-chain analytics tool Nansen show ZachXBT received USD Coin (USDC), tether (USDT), dai (DAI) – and even memecoins such as JESUS and PEPE – from hundreds of wallets.

Backers include crypto exchanges Binance, security firm CertiK, and Tron creator Justin Sun, among others. Most of these funds were received on the Ethereum blockchain, with smaller amounts sent from Arbitrum, BNB Chain, Optimism, Polygon and Fantom based tokens.

ZachXBT has moved the funds to another address as of Monday morning, the blockchain data shows.

NFT trader MachiBigBrother, otherwise known as Jeffrey Huang, last week sued ZachXBT, an independent blockchain detective, after the on-chain sleuth published a report last year alleging Huang embezzled tens of millions of dollars worth of crypto.

The lawsuit, filed on Friday in the U.S. District Court for the Western District of Texas, alleges ZachXBT defamed MachiBigBrother, "inflict[ing] serious reputational and monetary harm” on him. ZachXBT faces one count of libel and one count of libel per se, according to the complaint.

At the time, ZachXBT asked followers to help support the legal costs associated with fighting the lawsuit – aiming to raise at least $1 million.

Edited by Parikshit Mishra.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Read more about