Renowned Investigator of NFT and Cryptocurrency Fraud, ZachXBTwas beaten with a lawsuit by Jeffrey’Machi big brotherHuang in June 2023 over allegations of stealing a significant amount of blockchain-based funds. On August 14, the legal action was finally dismissed!
Huang came to an agreement with ZachXBT, which resulted in the prosecution removing all targeted allegations and, as a result, adjusting the tone of other claims.
1/2 today @machibigbrother agreed to voluntarily withdraw the lawsuit. I’ve updated my article with additional context from Machi + edits of my own
While I’m disappointed that it went down the legal path in the first place, I appreciate that we were able to find a solution
— ZachXBT (@zachxbt) August 14, 2023
The genesis of the NFT-based controversy
ZachXBT made bold allegations that Huang diverted $40.7 million (22,000 ETH) from the cryptocurrency firm Formosa Financial, which the alleged offender co-founded before being shut down.
Huang’s legal team denied such claims and contacted the U.S. District Court for the Western District of Texas, arguing that ZachXBT had unfairly tarnished Huang’s reputation and that the information was false. Following this, ZachXBT made prominent corrections to his original statement, removing a reference claiming that Huang had launched “more than ten unsuccessful tokens and NFT projects”, leading to Huang’s withdrawal from the legal battle.
Notably, an earlier description of Huang’s Mithril project from 2017 was also changed from a “suspicious background with unclear team members and questionable ethics” to a more balanced “team with dynamic members and striking price shifts.”
While the dismissal of the ZachXBT lawsuit related to NFTs and crypto has come to an end, a broader lesson remains about the importance of a transparent blockchain community, rigorous investigations, and the weighty impact of public statements.
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