Crypto Researcher ZachXBT Raises Over $500,000 for Legal Defense in Defamation Lawsuit

Crypto Researcher ZachXBT Raises Over $500,000 for Legal Defense in Defamation Lawsuit

Crypto researcher ZachXBT, who is facing a defamation lawsuit, has raised more than $500,000 in just 12 hours from the crypto community to support his legal defense.

The lawsuit has attracted significant attention, with prominent lawyer Stephen Palley joining ZachXBT’s defense team, reinforcing the importance of defending free speech in crypto journalism.

The crypto community rallied behind ZachXBT after he announced the defamation lawsuit, with supporters donating to a digital wallet address to help cover his legal expenses, which he estimates could exceed $1 million.

The fundraising campaign resonated with members of the crypto community who share concerns about censorship and legal threats against researchers. As of Saturday morning, the donation address held 163 ETH (approximately $290,000), as well as significant amounts of USDC, USDT, and other coins, totaling around $180,000. Notable contributors include Adam Cochran and Alex Svanevik.

Interestingly, the donations included unconventional tokens like $5,000 worth of JESUS token and 69 billion GENSLR tokens, valued at $800, which is a meme token related to Securities and Exchange Chair Gary Gensler, although not officially endorsed by him.

The lawsuit, filed in a Texas court, accuses ZachXBT of defaming Jeffrey Huang by alleging that Huang embezzled cryptocurrency from Formosa Financial, a crypto startup. Huang denied the claims and demanded their removal.

ZachXBT firmly maintains that the lawsuit is baseless and intended to censor him. The case is expected to serve as an important test for free speech rights in crypto research and journalism.