The blockchain investigator ZachXBT is facing a slander lawsuit, and the crypto community is defending him, once again demonstrating the industry’s strength. The community and well-known companies have given over $1 million in stablecoins and tokens to support ZachXBT’s legal fight. These contributions point to the community’s faith in ZachXBT’s value to the blockchain ecosystem.
The ZachXBT Defamation Lawsuit
NFT trader MachiBigBrother, also known as Jeffrey Huang, has filed a slander lawsuit against the on-chain detective.
According to the lawsuit, ZachXBT wrongly accused Huang of embezzling cryptocurrency valued at tens of millions of dollars, harming Huang’s reputation and finances. The complaint is seeking damages and court costs. By providing novel blockchain data analysis that exposed the wrongdoings of criminal actors in the decentralized finance and Web3 domains, the investigator rose to notoriety in the cryptocurrency community. His investigations have resulted in arrests, earning him a place on Consensus Magazine’s list of the Most Influential People in 2022.
On Twitter, Zach reacted to the case by labeling it a “David and Goliath story” and asserting that Huang was silencing Zach by using his resources.
He complained that the cost of fighting the lawsuit could exceed $1 million and pleaded with his supporters to contribute cryptocurrency to a wallet set up to cover his legal expenses. The wallet has received cryptocurrency donations totaling nearly $95,000 at the time of writing.
The Crypto Community’s Response
ZachXBT issued a call for help, and the crypto community and well-known companies responded quickly, banding together to donate almost $1 million in various stablecoins and tokens.
Several well-known companies, including CertiK, a renowned security company, and Binance, a prominent cryptocurrency exchange, are among the backers who have contributed a significant amount. Justin Sun, the developer of Tron, has also come forth to support the cause. These endorsements from well-known figures in the cryptocurrency sector strengthen ZachXBT’s case and underline the seriousness of the litigation.
ZachXBT’s legal defense received contributions from the whole cryptocurrency industry. These contributions went beyond just conventional cryptocurrencies. The money received includes well-known stablecoins like USD Coin ($USDC), Tether ($USDT), and Dai ($DAI), according to the on-chain analytics platform Nansen.
The Ethereum blockchain hosted most of these contributions, with minor contributions coming from other well-known blockchains, including Arbitrum, BNB Chain, Optimism, Polygon, and Fantom.
ZachXBT has since transferred the received sums to a different address to guarantee the security and transparency of the donations.
In addition to providing ZachXBT with a financial lifeline for his legal defence, the support from the crypto community and critical stakeholders in the sector also sends a statement to the larger legal and regulatory landscape. It highlights the community’s unity in defending its members against charges it deems unfounded.
On-Chain Analytics and Funds Movement
Nansen, an on-chain analytics platform, has given ZachXBT valuable insights about the donations it has received and their subsequent movement. The donation process now has an additional degree of accountability because of Nansen’s data tracking capabilities, which enable transparent visibility into the flow of funds.
Based on Nansen’s data, most donations made to ZachXBT were received on the Ethereum blockchain. It’s important to note that smaller donations were also from well-known blockchains, such as Fantom, Optimism, BNB Chain, Arbitrum, and Polygon. The decentralized character of the cryptocurrency community and its capacity to use a variety of venues for financial support is reflected in the diversity of blockchain networks.
What are Crypto Donations?
Within the blockchain ecosystem, cryptocurrency donations have become a significant form of support that helps community-driven projects and causes. Instead of more conventional methods, donations made via cryptocurrency have unique benefits that align with the community’s ideals.
Accounting executives at Coininsider affirm that transparency is a fundamental part of crypto donations. Money flow can be traced easily and verified by anybody because blockchain transactions are recorded on a public ledger. This openness guarantees responsibility on the receivers’ side and reassures donors that their gifts will be used as intended.
Donations made with cryptocurrencies have many advantages, such as accessibility and global engagement. With the growth of DeFi and the widespread use of crypto wallets, everyone can contribute instantly.
Additionally, cryptocurrency donations use blockchain technology to create beneficial network effects that let communities pool resources and make cross-border impacts quickly and safely. Examples of cryptocurrency donations include support for humanitarian activities, open-source initiatives, nonprofits, and judicial proceedings.
Over $1 million in donations from the crypto community and well-known companies demonstrate support for blockchain investigator ZachXBT as he defends himself against a defamation claim. These contributions, monitored by on-chain analytics, show how the crypto ecosystem is transparent and accountable. The donations also show how easily accessible and universally applicable cryptocurrency donations are, thanks to decentralised finance and cryptocurrency wallets. Donations made in cryptocurrency can promote innovation, establish beneficial network effects, and stand up for justice in the rapidly growing field of blockchain technology. The crypto community’s cohesion is evidence of its dedication to defending its members and preserving the values of openness and equity within the ecosystem.
Byline: Hannah Parker