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Renowned investigator of NFT and cryptocurrency fraud, ZachXBT, was slapped with a lawsuit by Jeffrey ‘Machi Big Brother‘ Huang in June 2023 over accusations 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 led to the accuser removing all pointed allegations and adjusting the tone of other claims as a consequence.
1/2 Today @machibigbrother has agreed to voluntarily withdraw the lawsuit. I have updated my article with additional context from Machi + edits from myself
While I am disappointed it went down the legal route in the first place I am appreciative we are able to find a resolution
— ZachXBT (@zachxbt) August 14, 2023
The Genesis of the NFT-Based Controversy
ZachXBT made bold accusations of Huang diverting $40.7 million (22,000 ETH) from the cryptocurrency venture Formosa Financial which the alleged offender co-founded before being ceased.
Denying such claims, Huang’s legal team contacted the U.S. District Court for the Western District of Texas, arguing that ZachXBT’s wrongly tarnished Huang’s reputation and that the information was incorrect. Following this, ZachXBT made prominent corrections to his initial statement, deleting a reference claiming that Huang launched “over ten unsuccessful tokens and NFT projects,” which led Huang to pull out of the legal battle.
Notably, a past description of Huang’s 2017 Mithril project was also modified from a “suspicious backdrop with unclear team members and questionable ethics” to a more even-handed “team with dynamic members and notable price shifts.”
Although the dismissal of the ZachXBT lawsuit regarding NFTs and crypto has come to an end, a broader lesson remains regarding the importance of a transparent blockchain community, rigorous investigations, and the weighty impact of public statements.
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*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.
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