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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

ZachXBT Slapped With Defamation Lawsuit For MachiBigBrother Exposé

Scott Matherson
Scott Matherson
1 year ago
3 mins read
ZachXBT crypto lawsuit

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A throwback article just came back to haunt one of the crypto industry’s favorite crypto investigators. ZachXBT, a popular crypto on-chain sleuth recently got slapped with a defamatory lawsuit over an article he published last year. 

The Controversial Article That Started It All

Around a year ago, ZachXBT published an article accusing Jeffrey Huang aka MachiBigBrother, of embezzling crypto assets using various methods ranging from failed pump and dump tokens to NFT projects. The article quickly gained widespread attention at the time, but it has been largely forgotten up until this point. 

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Jeffrey Huang, known online as Machi Big Brother, is a former Taiwanese-American musician and tech entrepreneur. 

Huang has now filed a defamation lawsuit against ZachXBT, claiming the year-old article has damaged his reputation. Huang has insisted, at least according to a post that he published on Twitter, that ZachXBT’s charges are false and defamatory. As a result, he has decided to sue for defamation of character.

A cursory reading of the article, on the other hand, reveals that it is an investigational piece that goes into considerable detail. In the article, ZachXBT provided on-chain data to back up his claims. The crypto sleuth initially accused Machi Big Brother of embezzling 22,000 ETH from Formosa Financial, a treasury management platform built for blockchain companies in 2018. Furthermore, ZachXBT then provided a list of other projects like Machi X and Wifey Finance.

Crypto total market cap chart from TradingView.com

Total market cap still sitting above $1 trillion | Source: Crypto Total Market Cap on TradingView.com

How ZachXBT Is Fighting Back Against The Lawsuit

ZachXBT is not taking this lawsuit lying down as he’s come out swinging against what he calls a baseless lawsuit with “an attempt to chill free speech.” ZachXBT has asked his followers and subscribers to support him against censorship and cancel culture, ensuring the truth survives. 

He termed the whole situation as a “classic David & Goliath story,” and many have spoken out on social media defending his right to express his opinions. Brown Rudnick, a law firm with its headquarters in Boston famous for defending Johnny Depp in his case against his ex-wife Amber Heard, has agreed to represent ZachXBT in the lawsuit.

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While lawsuits can be expensive to defend, ZachXBT says he will rely on donations from his followers to mount a proper defense. In this case, he says legal costs associated with the defense of this matter could easily exceed $1 million while providing a donation address. Donations have started to troop in. At the time of this writing, the address now contains more than $290,000. 

The outcome of this case could have significant implications for crypto media and regulations around defamation and libel for public figures in the crypto industry. 

Featured image from Legacy Design Strategies, chart from TradingView.com
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Scott Matherson
Scott Matherson

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Read more

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
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