Crypto supporters have rallied behind ZachXBT, an anonymous cryptocurrency researcher who is facing a defamation lawsuit. In just 12 hours, the crypto community raised more than $500,000 to aid ZachXBT in covering his legal expenses.
The lawsuit has gained significant attention, with prominent attorney Stephen Palley joining ZachXBT's defense. This development further emphasizes the importance of protecting freedom of speech in the realm of crypto journalism.
On June 16th, ZachXBT, the anonymous crypto researcher, revealed that he had been sued for defamation. In response, the crypto community swiftly mobilized, contributing over $500,000 to support him. ZachXBT shared the lawsuit via a tweet and provided a digital wallet address for those who wished to donate towards his legal costs, which he anticipates could exceed $1 million.
The fundraising initiative resonated strongly with members of the crypto community, reflecting their concerns regarding censorship and legal threats faced by researchers. As of last Saturday morning, ZachXBT's donation address held 163 ETH, valued at approximately $290,000 at current prices, as well as around $180,000 worth of USDC, $30,000 worth of USDT, and various other cryptocurrencies. Prominent crypto figures, including Adam Cochran and Alex Svanevik, were among the notable contributors.
Noteworthy contributions to the cause include $5,000 worth of JESUS tokens and 69 billion GENSLR tokens, equivalent to $800. The latter is a meme token themed around, but not officially endorsed by, Gary Gensler, the current Chair of the Securities and Exchange Commission.
The lawsuit was filed in a Texas court and accuses ZachXBT of defaming Jeffrey Huang. ZachXBT had made allegations that Huang had misappropriated cryptocurrency from a crypto startup called Formosa Financial. In response, Huang demanded that ZachXBT remove these claims, which he vehemently denied.
ZachXBT firmly maintains that the lawsuit is groundless and an attempt to suppress his voice. This case holds significant implications as it serves as a pivotal test for free speech rights within the realm of crypto research and journalism.