ZachXBT’s legal fees have been funded by CZ, Powell, and others, reaching over $1 million.
Blockchain investigator ZachXBT has received over $1 million in donations from the cryptocurrency community within just over 24 hours to pay for his legal fees in a defamation lawsuit. ZachXBT, who is known for his investigative work in the blockchain and cryptocurrency industry, has become involved in a legal dispute with Jeffrey Huang, also known as MachiBigBrother on Twitter. On June 16, Huang tweeted that he had filed a defamation lawsuit against ZachXBT, accusing him of damaging his reputation with false allegations. Although Huang did not specify what those allegations were, in June 2022, an article was published by ZachXBT titled “22,000 ETH Embezzled and Over Ten Projects Failed: The Story of Machi Big Brother (Jeff Huang),” in which ZachXBT accused Huang of launching over “over 10 failed pump and dump tokens and NFT projects.” In response to the lawsuit, ZachXBT called the lawsuit “baseless” and an “attempt to chill free speech” in a series of tweets on June 17. He set up a donation wallet address for his followers to assist with the legal fees, which he believes could “easily exceed” $1 million. Several crypto executives, including Changpeng “CZ” Zhao, CEO of Binance, and Jesse Powell, the co-founder of Kraken, donated to ZachXBT and praised him for his work in the crypto and Web3 industry. In just one day after ZachXBT shared the link to the donation wallet address on Twitter, he exceeded the $1 million mark in contributions. In October 2022, the French authorities utilized ZachXBT’s research to charge five people on suspicion of stealing $2.5 million worth of nonfungible tokens through phishing scams.