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

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.

  • Fed Sees Just One Rate Cut This Year; CRV Slides as Curve’s Founder Faces Liquidation Risk
    01:49
    Fed Sees Just One Rate Cut This Year; CRV Slides as Curve’s Founder Faces Liquidation Risk
  • What's Next for Bitcoin After Fed Predicts Just One Rate Cut for 2024
    00:50
    What's Next for Bitcoin After Fed Predicts Just One Rate Cut for 2024
  • Litecoin Creator Charlie Lee on Company Evolution
    09:05
    Litecoin Creator Charlie Lee on Company Evolution
  • U.S. CPI Returns Flat in May; Donald Trump Wants All Remaining Bitcoin to Be 'Made in USA'
    01:45
    U.S. CPI Returns Flat in May; Donald Trump Wants All Remaining Bitcoin to Be 'Made in USA'
  • 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.

    Disclosure

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

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies 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 with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    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.


    Read more about