The crypto community has come together to support on-chain investigator ZachXBT, who is currently facing a defamation lawsuit from Jeffrey Huang, also known as MachiBigBrother on Twitter. Huang took legal action after ZachXBT investigated and alleged that he embezzled 22,000 ETH from Formosa Financial in 2018.
ZachXBT, who has worked tirelessly for years exposing frauds and helping law enforcement agencies, has denied the allegations and called the lawsuit an attempt to suppress free speech. His fight against the lawsuit has been boosted by the support of the crypto community, who has raised over $690,000 to help him cover his legal fees.
Meanwhile, tether, the issuer of the world’s largest stablecoin by market capitalization, has released documents revealing that it keeps its funds in various banks, investment management firms, depositories, and securities. The documents show that over $35.5 billion in US dollar equivalents were held in these institutions as of March 31, 2021, with a further $5.1 billion detailed under “USDT lending” and other assets.
Despite this, the documents neither proved nor disproved allegations that Tether’s stablecoin was not fully backed in the past. The uncertainty surrounding Tether’s stability has led to increasing demand for self-custody and decentralized alternatives for trading, as users become wary of centralized entities’ mismanagement of funds.
While decentralized exchanges (DEXs) lack accessibility and advanced trading features compared to centralized exchanges, traders are looking for solutions that offer greater control over their assets. The crypto market continues to rise, with its market capitalization growing by over 2% to $1.05 trillion. However, the market is at a crossroads, with potential risks of invalidating the bullish setup altogether, as bears could push the market below the bull flag’s lower trend line.
In conclusion, the crypto market remains in flux, with both technical and fundamental factors contributing to its growth. The community is rallying around figures like ZachXBT, who fight for transparency and accountability in the industry. As the market evolves, traders will continue to seek out solutions that offer greater control and security for their assets, while regulators play a crucial role in ensuring that investors are protected from bad actors and frauds.