Lawsuit against onchain investigator ZachXBT has been withdrawn

Lawsuit against onchain investigator ZachXBT has been withdrawn

The iconic blockchain detective, ZachXBT, disclosed on Monday that the lawsuit filed against him by Jeffrey “Machi Big Brother” Huang, which was initiated in June, has been officially withdrawn. The decision comes on the heels of ZachXBT making significant revisions to his earlier publicized investigation, which exposed the wrongdoings of Huang.

Tainted reputation after allegations

ZachXBT’s original expose insinuated the Taiwanese-American musician and tech magnate was involved in criminal activity. Huang was accused of siphoning 22,000 ETH, valued at approximately $40.7 million at present, from Formosa Financial, a now-inoperative crypto venture he helped co-established.

However, the lawsuit was not just a reaction to these accusations. Huang’s legal team condemned ZachXBT for “publishing and maliciously promoting” misleading information. They argued that these baseless claims tainted Huang’s image, portraying him unlawfully, and thus, called for reparations for the inflicted damage to his standing.

Coming to an agreement after the lawsuit

Addressing the issue on Twitter, both parties shared their respective stances. ZachXBT stated:

ZachXBT also mentioned he is committed to refunding any surplus money garnered from well-wishers to sustain his courtroom battle.

On the flip side, Huang verified the retraction of the lawsuit on Monday. He underscored that this decision materialized only post-ZachXBT’s “important amendments” to his initial report. Huang remarked:

“Pursuing legal action against him was a last resort but not the right path. I am withdrawing my defamation suit.”

ZachXBT emends article – Withdraws allegations against Huang

A review of an archived rendition of ZachXBT’s contentious article revealed that several allegations, including the embezzlement claims, had been removed. Another notable exclusion was ZachXBT’s assertion that post-Formosa, Huang initiated over “10 failed pump and dump tokens and NFT projects.”

Furthermore, the tone of many sections was notably moderated. As an illustration, the original description of Huang’s 2017 project, Mithril, had terms like “sketchy” with “shadowy team members, questionable ethics, and rote pump and dump practices.” However, the revised version paints a different picture, mentioning “vivid team members and wild price fluctuations.”

This lawsuit’s conclusion emphasizes the intricate dance between investigative journalism and the potential repercussions of unsubstantiated claims, particularly in the rapidly evolving world of cryptocurrency and NFTs.

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