Crypto sleuth ZachXBT, known for his tireless pursuit of uncovering alleged financial misconduct in the cryptocurrency industry, finds himself at the center of a legal storm. In a surprising turn of events, an entrepreneur he had previously investigated, Jeffrey Huang, has filed a defamation lawsuit against him. 

The accusation stems from ZachXBT’s accusations on June 2022 that Huang, a Taiwanese-American musician and tech executive also known as Machi Big Brother, embezzled a staggering sum of 22,000 ETH, valued at approximately $37.8 million, from a now-defunct crypto treasury management platform. 

What makes this case particularly intriguing is that ZachXBT had meticulously supported his allegations with mountains of concrete on-chain data, lending weight to his assertions. 

ZachXBT Unravels Alleged Crypto Embezzlement Scandal

At the heart of this dispute lies an intricate web of allegations involving the defunct crypto treasury management platform co-founded by Huang. In an article published last year, ZachXBT implicated Huang in the embezzlement of a staggering 22,000 ETH (equivalent to approximately $37.8 million at the time) from the platform’s treasury.

The article detailed how George Hsieh, co-founder of Formosa Financial, allegedly removed 11,000 ETH from the project’s treasury, which subsequently experienced a tumultuous downfall.

According to ZachXBT’s analysis, the drained funds from the treasury were swiftly dispersed across multiple wallet accounts, including one that also received funds from an ENS domain associated with Harrison Huang.

Connecting the dots, the crypto investigator concluded that these addresses were linked to Jeff Huang/Mithril, ultimately implicating him in the misappropriation of funds.

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The on-chain investigator supported his claims with solid blockchain data, highlighting the ETH inflows of angel/private round funds into th

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Author: Christian Encila

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