Prominent Crypto Figures Rally $1M Support for ZachXBT Amid Libel Lawsuit

The legal dispute erupted after Jeffrey Huang, an NFT trader known as MachiBigBrother, accused ZachXBT of defaming him and causing “substantial reputational and financial damage.” ZachXBT, a reputed independent blockchain investigator, had previously released a report implicating Huang in the misappropriation of substantial cryptocurrency assets.

The lawsuit was filed in the U.S. District Court for the Western District of Texas last Friday, with ZachXBT charged with one count of libel and one count of libel per se as outlined in the complaint.

In response, ZachXBT sought financial assistance from his community to aid in covering the legal fees associated with the lawsuit, with a target of at least $1 million.

High-profile crypto entities and personalities such as Binance, CertiK, and Justin Sun have pooled more than $1 million to support blockchain detective ZachXBT in his impending defamation legal battle.

On-chain analytics tool Nansen indicates that the funds, composed of stablecoins and tokens including USDC, USDT, DAI, and even unconventional memecoins like JESUS and PEPE, arrived from hundreds of unique wallets. Most of the contributions were sent via the Ethereum network, with smaller amounts coming from chains like Arbitrum, BNB, Optimism, Polygon, and Fantom.

These funds have since been relocated to a different address as per blockchain records early this week.