Chain sleuth ZachXBT sued for defamation after claiming plaintiff drained project funds

Plaintiff Jeffrey Huang claims his reputation was tarnished when ZachXBT falsely accused him of embezzlement.

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Blockchain investigator ZachXBT has been sued for defamation by one of the people he accused of fraud, according to a June 16 social media post. According to the post, Jeffrey Huang, known as "MachiBigBrother" on Twitter, accused ZachXBT of damaging his reputation with false allegations.

MachiBigBrother also posted an announcement that he is suing the chain sleuth.

A year ago @zachxbt posted a Medium article about me that damaged my reputation. Today I filed a libel suit against him in the United States District Court for the Western District of Texas.

— Machi Big Brother (@machibigbrother) June 16, 2023

ZachXBT responded to the lawsuit by calling it "baseless" and "an attempt to chill free speech." He pledged to "fight back" against this.

In a thread responding to his own post, ZachXBT linked to the Medium post that he accused of being defamatory. Titled "22,000 ETH Hijacked and Over Ten Failed Projects: The Story of Machi Big Brother (Jeff Huang)", the article accuses Huang of launching "over 10 failed pump and dump tokens and NFT projects". , including the Formosa Financial cash management service. /p>

One of the claims in the article is that Formosa Financial co-founder George Hsieh withdrew 11,000 ether (ETH) from the project's treasury:

"Formosa Financial has deteriorated...