- Blockchain investigator ZachXBT confirms the defamation lawsuit brought against him by NFT trader Jeffrey Huang.
- ZachXBT and Huang reach an agreement, leading to modifications in the investigation report.
- While disappointed by the legal proceedings, ZachXBT expresses relief in finding a constructive resolution to the matter.
Prominent blockchain investigator ZachXBT, renowned in the crypto industry for his sleuthing prowess, revealed on Monday that the defamation lawsuit launched against him by entrepreneur and NFT trader Jeffrey “Machi Big Brother” Huang in June has been formally dropped.
This legal resolution came about as a result of an agreement reached between ZachXBT and Huang. Notably, ZachXBT took significant steps to modify his published investigative report. In doing so, he removed some of the more pointed allegations directed at Huang and adopted a milder tone for certain claims.
2/2 I would like to thank everyone in the community for their donations and support during the process.
It meant a great deal to me and made a huge difference.
Soon I will announce the process of returning any unused funds from the legal defense.
— ZachXBT (@zachxbt) August 14, 2023
“While the initiation of legal proceedings was regrettable, I am relieved that we managed to find a constructive way to resolve this matter,” ZachXBT conveyed on his Twitter account, expressing his perspective on the outcome.
ZachXBT also announced his intention to promptly reimburse any remaining funds contributed by supporters to finance his legal defense.
Huang, a figure known for his roles as a Taiwanese-American musician and tech entrepreneur, had initiated the lawsuit against ZachXBT in the U.S. District Court for the Western District of Texas. The lawsuit was centered on ZachXBT’s accusations of embezzlement within the context of a crypto project named Formosa Financial, which Huang co-founded.
ZachXBT’s investigative exposé, published in June 2022, had accused Huang of misappropriating 22,000 ETH, an amount equivalent to approximately $40.7 million at the time, from the now-defunct Formosa Financial.
In the complaint filed for the lawsuit, Huang’s legal representation contended that ZachXBT had engaged in the “publication and malicious promotion” of false information that unjustly portrayed Huang as a criminal. The lawsuit sought reparations for the damage inflicted on Huang’s reputation.
Acknowledging the development, Huang conveyed on Twitter that he had chosen to withdraw the defamation lawsuit in light of ZachXBT’s substantial alterations to the original article. Huang emphasized that pursuing legal action had been a last resort and acknowledged it wasn’t the most appropriate course of action.