Plaintiff Jeffrey Huang alleges ZachXBT wrongly accused him of embezzlement, which hurt his reputation.
Jeffrey Huang, also referred to as “MachiBigBrother” on Twitter, has filed a libel lawsuit against blockchain researcher ZachXBT. ZachXBT was accused by Huang of tarnishing his name by making untrue claims. On June 16, Huang declared on social media that he would be suing the on-chain detective.
In his response to the complaint, ZachXBT referred to it as unfounded and an effort to censor free speech. He vowed to respond aggressively to the charges.
ZachXBT shared a link to a Medium article that has been accused of publishing defamatory material. Jeff Huang, according to the article “22,000 ETH Embezzled and Over Ten Projects Failed: The Story of Machi Big Brother (Jeff Huang),” was responsible for the creation of numerous unsuccessful pump and dump token and NFT projects, including Formosa Financial.
According to the article, ZachXBT’s analysis of blockchain data revealed that money was taken from the treasury and moved to other wallet accounts, including one connected to Jeff Huang/Mithril. Huang was given the blame for the funds’ depletion by the investigator, who also produced a graph demonstrating ETH inflows into the multisig account prior to the withdrawals.
The legal issue brings to light the conflict between Huang’s defense of his reputation and ZachXBT’s allegations of fraud. The lawsuit’s future course and any potential repercussions for either party are yet uncertain.
ZachXBT’s assertions aren’t taken into account, according to Huang’s legal team, who maintains that the creators of the project are more likely to be accountable for the theft of ETH from the treasury.
Additionally, according to the lawsuit, ZachXBT’s objective for publishing the piece was financial gain from the donations he receives in exchange for his services as an on-chain detective.
On June 16th, ZachXBT denied these claims in a Twitter conversation, claiming Huang was trying to intimidate him. He expressed his dissatisfaction with the circumstance, stating that telling the truth might occasionally result in people not agreeing with what is spoken.