Cryptocurrency Community Supports ZachXBT, Raises $700,000 For Legal Fees
In recent news, the cryptocurrency community came together to contribute around $700,000 for Sleuth ZachXBT’s legal costs. According to the report, Sleuth ZachXBT accused Formosa Financial CEO Ryan Terribilini and his colleagues of stealing 22,000 ETH from the company.
The said donation pattern, according to data from Web3 Knowledge Graph Protocol 0xScope, was raised through contributions from different individuals and organizations, including Jesse Powell of Kraken, who gave $17,000; Justin Sun of Tron, who gave $10,000 TUSD, and Memeland, $11,800.
These contributions assisted ZachXBT with the legal costs they suffered due to Huang’s defamation lawsuit against him. George Hsieh, the Forrnosa Financial Project co-founder and others (not mentioned at the moment) have been implicated in the lawsuit. Hsieh and his colleagues were accused of withdrawing 11,000 ETH each from the company’s treasury in 2018 when Hsieh was presiding as the only company’s director.
ZachXBT, while appreciating the efforts of its community, recalled the origin of the lawsuit, stating that Jeffrey Huang, popularly called MachiBigBrother, sued the company on the 16th of June for an article on the Medium platform, published sometime in June 2022, accusing him of embezzling 22,000 ETH from Formosa Financial treasury coffers in 2018.
Forrnosa Financial Founders Fingered, Progress Of The Lawsuit Explained
It was gathered that the Brown Rudnick: Boston-based law firm has offered to represent ZachXBT. This was officially confirmed on the official Twitter handle of Stephen Palley, a partner at Brown Rudnick. Information gathered on Brown Rudnick revealed that he was the council representing Johnny Depp during his defamation court case with his estranged wife, Amber Heard.
Further investigation into this accusation shows that the article accused Huang of venturing into many shady digital currency projects that didn’t go well hence, the mismanaged funds. Many investors and major stakeholders have raised concerns about the lawsuit’s potential effects on free expression inside the cryptocurrency community.
While commenting on this development, Oluwapelumi Adejumo, a cryptocurrency market analyst with BeInNews Academy, said that the case has brought to light the necessity for precise rules and regulations in the cryptocurrency sector.
He suggested that it is important that there be clear guidelines and standards in place as the market develops and grows so that people and businesses can be held accountable for their activities. Adejumo explained that the situation also emphasizes the significance of doing due diligence when funding cryptocurrency ventures and advised investors to conduct in-depth due investigation on any project before investing because the industry is still somewhat young and unregulated
Meanwhile, Huang’s council has told the United States District Court in Texas that his client did not embezzle funds from Forrnosa Financial Project as earlier accused. He further explained to the court that his client wasn’t in charge of the company’s finance, making it impossible to access the said funds. Huang’s legal team pointed accusing fingers at other founders of Forrnosa Financial.
He insisted that they are likely in a position to pull off such a criminal stunt as they have failed to account for the missing ETH. Also, recall that ZachXBT, before now, was responsible for exposing several other scam scenarios, including an article he did on the 10th of June about a $10 million Twitter cryptocurrency phishing scam. He also did another expository article on the 4th of June on a $35 million cryptocurrency scam through the Atomic Wallet App.
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