ZachXBT, an on-chain crypto sleuth, is named in a June 15 lawsuit that alleges he published a defamatory article.
Crypto entrepreneur Machi Big Brother wrote on June 16:
A year ago, [ZachXBT] published a Medium article about me that damaged my reputation … I have consistently maintained that the allegations in his article are false. I look forward to proving through the lawsuit that [he] unlawfully defamed me.
ZachXBT’s 2022 article specifically accuses Machi of embezzling 22,000 ETH ($37.8 million) from a crypto project called Formosa Financial in 2018.
Machi’s case filing specifically alleges that ZachXBT is responsible for “publishing and maliciously promoting” allegedly false claims in his article. The filing’s introduction contests Machi’s alleged embezzlement and market manipulation actions.
ZachXBT’s article also alleges that Machi was involved in numerous blockchain projects that he called pump-and-dump schemes.
ZachXBT establishes legal fund
ZachXBT responded on June 16 by stating that Machi’s lawsuit is a “baseless and attempt to chill free speech.” He added that he intends to fight the case.
ZachXBT highlighted the cost of legal defense and said that expenses could be more than $1 million. He noted that Machi is “very wealthy.” In order to offset this, ZachXBT opened a cryptocurrency donation address, noting that funds that are not spent on his legal defense will be returned to donors.
The case was filed in the U.S. District Court for the Western District of Texas. It is unclear whether it has legal merit. CryptoSlate will continue coverage as the story develops.
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