Crypto donors raise $500,000 to support ZachXBT in lawsuit

Quick Take

  • ZachXBT, an anonymous crypto researcher facing a defamation lawsuit, raised over $500,000 in 12 hours from the crypto community for his legal defense.
  • The lawsuit has garnered attention, with prominent lawyer Stephen Palley joining ZachXBT’s defense, reinforcing the fight for free speech in crypto journalism.

The crypto-community has raised over $500,000 to support anonymous crypto investigator ZachXBT, who announced yesterday he is being sued for defamation. 

The anonymous, on-chain lurker shared the lawsuit in a tweet Friday afternoon along with a digital wallet address for donations to help cover his legal costs, which he estimates could exceed $1 million.

The fundraising effort appears to have struck a chord with members of the crypto community, echoing concerns about censorship and legal threats against researchers. As of Saturday morning, ZachXBT's donation address holds 163 ETH, worth about $290,000 at current prices, as well as ~$180,000 of USDC, ~$30,000 of USDT, and other coins. Notable crypto contributors include Adam Cochran and Alex Svanevik.

The donations include $5,000 of JESUS token and 69 billion GENSLR tokens, worth $800, a meme token themed around — and not endorsed by — the current Securities and Exchange Chair Gary Gensler.

The lawsuit, filed in a Texas court, accuses ZachXBT of defaming Jeffrey Huang. ZachXBT alleged Huang embezzled cryptocurrency from Formosa Financial, a crypto startup. Huang demanded that ZachXBT remove the claims after denying them.

ZachXBT maintains that the lawsuit is baseless and meant to censor him. The case is poised to be an important test of free speech rights in crypto research and journalism. 

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