Crypto whistleblower ZachXBT sued in defamation case, invites donations
ZachXBT, a prominent whistleblower in the cryptocurrency community, was named in a June 15 lawsuit for publishing defamatory articles.
Crypto entrepreneur Machi Big Brother wrote: June 16th:
one year ago, [ZachXBT] Publishing a Medium article about me and damaging my reputation…I have consistently claimed that the claims in his article are false.I look forward to proving it through litigation. [he] unfairly defamed me.
Zach XBT Articles for 2022 Specifically, Machi is accused of embezzling 22,000 ETH ($37.8 million) from a cryptocurrency project called Formosa Financial in 2018.
The article also claims Machi was responsible for numerous “pump and dump” projects. The document describes machi’s involvement (both acknowledged and alleged) in blockchain projects such as Mithril, Machi X, Cream Finance, Wifey Finance, Swag Finance, Mith Cash, Typhoon Cash, Mud Games, Squid DAO, etc. ) is explained.
Machi’s lawsuit specifically alleges that ZachXBT was responsible for “publishing and maliciously promoting” the allegedly false allegations in his article. The foreword to the filing disputes Machi’s embezzlement allegations and market manipulation practices.
ZachXBT Responds to Lawsuit
ZachXBT replied June 16th It said Machi’s lawsuit was “baseless and an attempt to chill free speech.” He added that he plans to fight the lawsuit.
ZachXBT emphasized the cost of recruiting legal defense, saying the costs could exceed $1 million.He said Machi was “extremely wealthy” and called the incident “typical David” [and] The story of Goliath. ZachXBT has opened a cryptocurrency donation address, stating that funds not used in legal defense will be returned to donors.
The lawsuit was filed in the United States District Court for the Western District of Texas. Not sure if there are legal benefits. CryptoSlate will continue our coverage as the story unfolds.
Note: ZachXBT has redacted the names of the parties, but previously revealed Machi’s real name. Machi’s lawsuit, which lists both parties by name, was circulated on social media by unrelated parties. CryptoSlate has chosen to publish a pseudonym.
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