ZachXBT Archives | Protos https://protos.com/tag/zachxbt/ Informed crypto news Thu, 14 Nov 2024 13:59:34 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.6 https://protos-media.s3.eu-west-2.amazonaws.com/wp-content/uploads/2022/01/30110137/cropped-protos-favicon-32x32.png ZachXBT Archives | Protos https://protos.com/tag/zachxbt/ 32 32 OpSec chief says team quits after ZachXBT exposé, project denies it https://protos.com/opsec-chief-says-team-quits-after-zachxbt-expose-project-denies-it/ Thu, 14 Nov 2024 13:45:48 +0000 https://protos.com/?p=79897 What's left of the OpSec team appear to have been surprised by the resignation of its former CEO, Chris Williams.

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OpSec chief exec Chris Williams has resigned “effective immediately,” just two weeks after crypto sleuth ZachXBT exposed the project as a scam.

Williams announced his resignation via X on Thursday, and claims that the entire core team has followed him out the door. The former CEO confirmed ZachXBT’s allegations, citing them as the reason for his resignation.

“The decision follows recent findings, highlighted by @zachxbt, along with our own assessment of OpSec’s operations.

“These revelations, coupled with the un-doxxed founder’s prolonged absence and sole control over the company’s finances, have several limited our ability to lead and execute our vision effectively.”

ZachXBT calling out the influencers paid to promote OPSEC.

Read more: Polymarket faces US probe as Kalshi exec allegedly fuels wash-trading concerns

Williams continued to say that the team had experienced severe stress in the form of “payment delays, layoffs and [a] lack of clarity regarding OpSec’s direction.”

According to OpSec’s bio, it’s an AI-powered decentralized cloud security provider. In November, ZachXBT posted a thread showing anonymous X user @TheZopp0 discussing OpSec’s lack of “technical research.” Zopp was reportedly tied to SCALE, NTD, TPU, and OPSEC and farmed “naive traders using numerous influencers.”

ZachXBT also reported that OpSec used two-year-old footage of a data center and claimed it as its own infrastructure. 

CEO resignation seemingly surprised remaining OpSec team

Since William’s resignation, the OpSec X account has claimed that the project has not been abandoned and that the core developer team remains on board.

It said, “We had hoped something like this would have been talked through internally first as a team to come to an agreement or resolution on the matter.”

Read more: Alleged crypto scammer gets a face reveal courtesy of ZachXBT

The company’s OPSEC token plummeted over 88% last July after the OpSec team claimed a security breach resulted in the theft of funds from its staking contact. Multiple users reportedly questioned this narrative, raising the idea of a potential pump-and-dump scheme. OPSEC’s price never recovered.

Some users are questioning Williams’ resignation, calling it a “planned exit,” and are demanding accountability.

An “ask me anything” X space will be hosted by Williams soon, but he has yet to decide on a date. 

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ZachXBT reveals wallets of analyst Murad Mahmudov, angers memecoiners https://protos.com/zachxbt-reveals-wallets-of-analyst-murad-mahmudov-angers-memecoiners/ Wed, 09 Oct 2024 17:58:34 +0000 https://protos.com/?p=77002 ZachXBT shared the details of 11 wallets he believes belong to memecoin shill Murad Mahmudov and noted they hold roughly $24 million.

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Crypto sleuth ZachXBT has rilled up the memecoin community after exposing the holdings of Murad, a micro-cap memecoin promoter with a following on X (formerly Twitter) of more than 200,000 users. 

The well-known investigator shared the details of 11 wallets he believes belong to Murad Mahmudov and noted they collectively hold roughly $24 million in memecoins.

He claimed the wallet reveal would allow the community to “monitor [Murad’s] future activity” and added that Murad is making “very bold predictions about micro-cap memecoins to thousands and thousands of followers while controlling the supply.” 

“People deserve to make more informed decisions about the coins they buy,” he said. 

Murad, who previously owned a failed bitcoin fund called Adaptive Capital is trending in the memecoin community after he gave a speech during TOKEN2049 about a ‘memecoin supercycle.’

Not everyone was annoyed with ZachXBT’s post, with many X users praising his criticism of memecoin promoters.

ZachXBT’s post received a serious amount of backlash from multiple memecoin influencers and sparked a debate on memecoin promotion. Multiple X users accused him of ‘doxxing’ Murad while some claimed the wallet reveal put Murad “in significant danger.”

However, many other crypto enthusiasts have pointed out that the very nature of the blockchain means that all this information was already public knowledge. Many X users also noted that Murad has shared his purchases online before.

Read more: 3AC founders’ Three Arrowz Capitel memecoin crashes faster than 3AC

Last weekend ZachXBT also upset memecoin fans after he argued with popular crypto influencer Ansem over his promotion of them. During the debate, Ansem asked, “Why is talking about lowcaps considered grifting?”

In response, ZachXBT noted that Ansem regularly rotates between shilling different memecoins to his 600,000 followers. He added, “I do not pump and dump hundreds of low cap coins to my 600K followers I actually help people in the space by solving hacks, getting criminals arrested, and recovering funds from victims.”

Indeed, after today’s Murad expose, Ansem posted “Team Murad,” to which ZachXBT replied, “Team Grifter.”

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Alleged crypto scammer gets a face reveal courtesy of ZachXBT https://protos.com/alleged-crypto-scammer-gets-a-face-reveal-courtesy-of-zachxbt/ Mon, 30 Sep 2024 18:18:59 +0000 https://protos.com/?p=76301 Crypto sleuth ZachXBT claimed that the alleged crypto scammer stole $650K while in the UK and confirmed his face was exposed in a video call.

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The face behind an alleged $650,000 UK crypto scam that was documented in detail by ZachXBT today has been revealed by a user on X (formerly Twitter).

X user Padrino revealed a photo of the alleged scammer while asking if they’re “Ready to go to prison?” They posted screenshots of the individual while they appeared on a webcam.

ZachXBT has confirmed that the individual is indeed the alleged scammer, telling Protos that footage of the individual was recorded during a video call and that a photo of his face was shared with Padrino.

Audio from the call was shared here in ZachXBT’s thread. The crypto sleuth claimed the man stole crypto from over 250 individuals by promising a paid trading service that was promoted with screenshots of fake, lucrative trades.

Victims were coaxed into sending $250-$500 first, then, after being told their profits had skyrocketed, the victims were pressured into sending another $20,000 to claim their supposedly locked funds.

It is suspected that the figure for victim losses is larger than $650,000 and that the alleged scammer is in the UK and not in Singapore as they claim.

ZachXBT said, “It is sad to watch this scammer take advantage of so many desperate people and newbies looking for a win. Hopefully this info will assist law enforcement in further identifying the scammer.” 

Another crypto scam group was infiltrated by ZachXBT this month, where the scammers were filmed celebrating the theft of over $238 million.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on XInstagramBluesky, and Google News, or subscribe to our YouTube channel. Quotes in bold are our emphasis.

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Su Zhu’s favourite trader MAJIN on scam allegations and ‘self-destruction’ https://protos.com/su-zhus-favourite-trader-majin-on-scam-allegations-and-self-destruction/ Wed, 07 Aug 2024 11:30:57 +0000 https://protos.com/?p=72168 Crypto trader and influencer MAJIN earned an eyebrow-raising endorsement from a formerly imprisoned co-founder of a failed hedge fund.

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Su Zhu, the once-imprisoned co-founder of collapsed hedge fund Three Arrows Capital (3AC), took to X (formerly Twitter) to promote MAJIN, a supposedly expert trader with ‘surgical levels of analysis’ who, according to him, posted the world’s best commentary for traders during last weekend’s crypto market crash.

Earning hundreds of thousands of impressions, MAJIN is a curious recommendation for several reasons. Commenters under Zhu’s endorsement immediately called MAJIN a scammer and rug-puller among various expletives.

Elsewhere, critics claim that MAJIN has asked for money, reneged on promises, and failed to refund victims. In any case, Protos reached out to MAJIN for comment on his contentious background.

MAJIN, whose username ‘MajinSayan’ is a Dragon Ball Z reference, has spent most of the year posting about DeFi trades and traders. He claims to have been “kicking against nepotistic circles, insider schemes, actual fraud, and other anomalies.”

Don’t leave that out of the article,” he underscored.

Aside from Zhu’s endorsement, the next most popular tweet about MAJIN is an allegation by widely respected forensic investigator ZachXBT that MAJIN helped raise over 160 ether for an abandoned NFT project, The Bazaar.

The Bazaar made MAJIN famous for all the wrong reasons. He spent a long time promoting the NFT collection which has been abandoned since 2022. Its website is offline entirely.

According to ZachXBT and many critics, MAJIN solicited hundreds of thousands of dollars for the project and then refused to gain a refund for any victims. In a comment to Protos, MAJIN obviously disagreed with this characterization.

MAJIN’s post-mortem on The Bazaar

“What happened with The Bazaar is separate from me getting into cycles of self-destruction. I was not in charge of the treasury, I apparently also legally have no link with the corporation that was set up, but no one did anything wrong,” MAJIN said.

“The two devs/co-founders just were delaying things to keep building the codebase. All logistics were put in place. Some equity deals and other offers of partnerships were rejected by the devs who did not want to sell themselves short.

“At some point, the 2021 top was in, our previous angels backed out, and there was no runway to launch. So we had to start pitching to every VC in the industry. I recall the entirety of LUNA meltdown busy pitching. In the end, some, that showed interest, still didn’t go through with it, either because logistics and scaling of real world is less secure than virtual projects, or because it was a dark bear market in 2022.

“In the end, nothing could be done to start the project which otherwise was fully ready and merely out of runway due to an unfortunate set of circumstances. There were even some that showed interest in buying the codebase, or sparking life into the frozen project. But like I said, since I have no legal link to the corporation, and I’m not in charge of any decision, I don’t have control over why and how that stuff did not happen.”

ZachXBT is not a fan of MAJIN.

Read more: Expert in losing money Su Zhu says you can afford to lose $10k

MAJIN explains cycles of self-destruction

Next, MAJIN responded to other criticisms.

“On the other point: Me taking on debts, and staying unstable, kept getting stuck in cycles of self-destruction. I will not be ashamed of hardships I have caused or experienced, and it disturbs me that it’s being used as a discrediting campaign today, instead of, let’s say, last year.

“Nor did I intentionally try to harm anyone, I haven’t intentionally tried to take advantage of anyone, I have explicitly rejected all extractive offers for promoting projects, and have been called retarded by everyone offering since that’s how normalized it is. 

“So what are you publishing about? A guy whose real-world NFT project got let down by an industry focused on projects that secure value-extraction. A guy that let himself slip into darkness. A guy that finally escaped that abyss.  

“Furthermore, I want to reiterate that there are worse things happening, on higher scales, which actually deserve our attention right now. So publishing an article about me in this case, helps no one.”

Protos asked one final question: Do you have any on-the-record response to claims that you’ve asked for loans or other temporary funds and failed to return that money to lenders or people who expected repayment?

MAJIN responded, “Don’t worry, everything will eventually be cleared.”

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A single malicious transaction led to $230M drained from WazirX https://protos.com/a-single-malicious-transaction-led-to-230m-drained-from-wazirx/ Thu, 18 Jul 2024 13:26:33 +0000 https://protos.com/?p=70801 The WazirX hacker — likely the Korean Lazarus Group — reportedly compromised authorized addresses directly or via social engineering.

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Indian crypto exchange WazirX lost over $230 million worth of assets after addresses governing its multisig wallet were compromised.

Cyvers was the first to flag the outflows, identifying the compromise of WazirX’s Safe wallet by a Tornado Cash-funded attacker on the Ethereum network.

Read more: Hackers switching to centralized exchanges to fund crypto attacks

The alert was followed up by crypto sleuth ZachXBT, who shared the hacker’s primary address, later receiving a bounty for identifying a further funding source that came from an exchange with know-your-customer (KYC) procedures.

WazirX’s acknowledgment of the ‘security breach,’ posted approximately half an hour after the initial alert, states that to “ensure the safety of [customers’] assets, INR and crypto withdrawals will be temporarily paused.”

Safety in numbers?

The affected wallet is a Safe ‘multisig,’ a type of account that requires a specified threshold of authorized addresses in order to confirm transactions. This ostensibly makes multisigs more secure than a regular address controlled by a single private key.

However, in this case, a single malicious transaction was all that was needed to drain WazirX of $230 million worth of crypto assets.

The exploiter was able to pass the transaction either by compromising the authorized addresses directly or via the use of social engineering techniques on the signers.

After describing the incident as ‘Desi Mt. Gox,’ Polygon Network’s CISO, Mudit Gupta posted a full analysis of the hack to X (formerly Twitter). He notes that two addresses were likely compromised, with a further two signatures needed to hit the multisig’s threshold for approving transactions.

Read more: Mt. Gox site down for 24 hours, creditors flag scam login emails 

Gupta highlights that “two signers were tricked into signing malicious transaction (sic) in the name of a normal USDT transfer.”

These two signatures were later used to modify the logic of the Safe multisig wallet, allowing the hacker’s own attack contract (deployed eight days ago) to automate token transfers, which sent the assets directly to the attacker’s address.

Laundering the loot

At the time of writing, the hacker’s primary address contains $136 million of ETH and other tokens, according to data from blockchain explorer Etherscan. 

Much of the stolen assets are gradually being moved on to additional addresses, where they are swapped for ETH. Some funds were also traced to exchanges ChangeNOW and Binance, according to Beosin, which tallied over 200 tokens that had been drained.

SHIB represented almost $100 million of the total loss. Around a third of this has been sold, resulting in a price drop of almost 10%, according to data from CoinMarketCap

Based on the attack vector and funding/laundering patterns, Gupta, ZachXBT, and blockchain forensics firm Elliptic all suspect the hack was carried out by a team of North Korean hackers known as the Lazarus Group.

Read more: Axie co-founder hacked for $10M two years after $625M Ronin attack

Lazarus is suspected to be responsible for a seemingly endless stream of crypto hacks, including last year’s $41 million hack on crypto casino Stake and the $625 million hack of Axie’s Ronin Bridge in 2022.

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Crypto sleuth ZachXBT wins second Arkham bounty after WazirX hack https://protos.com/crypto-sleuth-zachxbt-wins-second-arkham-bounty-after-wazirx-hack/ Thu, 18 Jul 2024 12:46:39 +0000 https://protos.com/?p=70773 WazirX was hacked on July 18 and funds, including $100 million worth of SHIB and $52 million in ETH have reportedly already been sold.

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Crypto sleuth ZachXBT has claimed his second bounty after submitting ‘definitive’ evidence of the KYC-deposit address used by a hacker to cash in on the $235 million WazirX hack. 

Arkham posted the bounty this morning offering 5,000 ARKM (~$8200) to anyone able to identify the KYC centralized exchange deposit, the exploiter’s identity, or help return stolen funds.

Indian crypto exchange WazirX was hacked on July 18 and funds, including $100 million worth of SHIB and $52 million in ETH have reportedly already been sold.

The completed WazirX bounty awarded to ZachXBT.

Read more: Is CertiK running a BS bug bounty program?

ZachXBT told Protos that he was already following the WazirX hack and that submitting evidence for the bounty was as simple as exporting a graph. He added that it wasn’t super difficult to identify the relevant centralized exchange deposit address. 

He also shared his method of tracking the exploiter’s transactions, noting that the WazirX hack “has the potential markings of a Lazarus Group attack (yet again).” Blockchain analysis firm Elliptic shared similar suspicions that it could be linked to the North Korean hacking collective.

ZachXBT previously claimed a $150,000 bounty from Arkham that asked for evidence identifying the creator of the Donald Trump-themed DJT token. Indeed, he submitted evidence that Martin Shkreli was DJT’s creator which Arkham accepted as ‘definitive’ proof.

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SIM-swap reportedly outs crypto influencer as scammer https://protos.com/sim-swap-reportedly-outs-crypto-influencer-as-scammer/ Mon, 13 Nov 2023 18:22:01 +0000 https://protos.com/?p=51818 The crypto influencer known as Profit Blue is alleged to have scammed one of his followers out of $11,000 before being liquidated.

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A prominent crypto influencer with over 240,000 followers has apparently been outed as a scammer after a hacker allegedly exposed a series of his X (formerly Twitter) DMs. 

As documented by crypto sleuth ZachXBT, last week the X account belonging to Profit Blue (@profit8lue) was hacked in a so-called ‘SIM-swap’ attack.

SIM-swapping involves a scammer tricking a victim’s carrier into sending their texts and calls to them instead, along with their account information and passwords.

In this case, the attacker was able to take control of Profit Blue’s X account and release a number of DMs that show the influencer allegedly scamming one of their followers out of $11,000 after failing to publish a promotional tweet. They were then apparently liquidated and tried to ask for more funds.

However, this was when the victim demanded answers. “Man we have a deal and you’re not keeping any of the promises that you told me,” they said back in March.

“Are you still planning for the first tweet. It was called Twitter back then,” they asked in the one-sided exchange. 

The leaked screenshots shared with ZachXBT.

Read more: 20-year-old imprisoned for $1M crypto SIM-swap scam

Profit Blue eventually replied saying, “Sorry for the late reply. Could we do another payment and I’ll show up and do everything.”

The buyer responded, “Are you being for real now, another payment for what and why??! You didn’t deliver and we pay another payment, I never saw anything like this in my life you see us that (sic) stupid?????”

Another user claiming to have been scammed also told ZachXBT that he failed to post a shoutout despite being paid 2 ETH (currently worth over $4,000). 

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Lawsuit embroiled Machi Big Brother has lost over $10M in NFTs https://protos.com/lawsuit-embroiled-machi-big-brother-has-lost-over-10m-in-nfts/ Fri, 23 Jun 2023 14:42:47 +0000 https://protos.com/?p=40717 The entrepreneur that sued crypto sleuth ZachXBT for defamation has a realized NFT loss of over $11 million at press time.

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Tech entrepreneur and former rapper Jeffrey Huang, known as Machi Big Brother online, crossed the $10 million benchmark in NFT losses on Thursday when several were dumped at once.

Huang first found success as an original member of 90s hip-hop group L.A. Boyz — famous in Taiwan — and has since become known as an NFT collector and serial entrepreneur. According to crypto analyst ZachXBT, however, Machi Big Brother’s business dealings aren’t quite in tune.

Controversy was stirred within the crypto community last week when Huang filed a defamation lawsuit against ZachXBT over a Medium article that showed on-chain data suggesting Huang embezzled from his former company.

According to the sleuth, Formosa Financial promised Binance and other investors it would launch a centralized crypto exchange — instead, its founder Huang embezzled 22,000 ether in 2018 (worth $41 million at press time).

“I have consistently maintained that the allegations in his article are false. I look forward to proving through the lawsuit that ZachXBT unlawfully defamed me,” Machi Big Brother tweeted on June 16.

In response to the filing, ZachXBT said, “The lawsuit is baseless and an attempt to chill free speech. I intend to fight back.”

Read more: Twitter Spaces host Mario Nawfal’s dubious crypto dealings

The crypto analyst’s subsequent call for funding resulted in over $1 million in donations. Controversial crypto founders Changpeng Zhao (CZ) and Justin Sun have donated $50,000 and $10,000 respectively.

Machi won’t be paying lawyers with NFT profits

Huang raked up a substantial amount of losses buying hundreds of Bored Ape Yacht Club (BAYC) NFTs during the bull market hype. He sold most of them during this year’s brutal NFT bear market. 

On Thursday, Machi Big Brother sold 15 BAYC NFTs for 532 ether ($1 million) — bringing their overall losses up to 5,900 ether ($11 million).

Machi Big Brother’s NFT collection on Blur shows a realized loss of 5,897 ether.

The portfolio was down far less three months ago. Last March, Machi Big Brother had only a 2,400 ether loss ($4.5 million at press time).

Huang’s dumping has contributed to the downfall of BAYC’s floor price. It rests at 37 ether at press time ($70,000), down 85% from its all-time high.

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The rise of the crypto influencer and the fall of truth https://protos.com/the-rise-of-the-crypto-influencer-and-the-fall-of-truth/ Mon, 26 Sep 2022 17:47:58 +0000 https://protos.com/?p=27177 Crypto influencers like BitBoy have millions of online followers and when it comes to boosting or killing a project, their opinion counts.

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The rise of the influencer class has been nothing short of meteoric across nearly every social media platform and has found particular favor among the new, media-savvy, wealthy elite. Unfortunately, the new wealthy elite appears to be exactly the same as the old wealthy elite, as illustrated by its increased willingness to litigate against critics.

The influencer class in crypto

While there are hundreds of new influencers in the cryptocurrency industry, few have slimed their way into the mainstream consciousness like Ben Armstrong (or BitBoy Crypto on most social media) and Ran Neuner.

The two combined have millions of YouTube subscribers, over a million Twitter followers, and about half a million Instagram followers, meaning they leave a pretty large footprint when it comes to investments they suggest, lampoon, or otherwise give advice about. This massive following also provides them the capital and time they need to come after anyone who decides to investigate their respective histories.

BitBoy

Ben’s story is one of redemption: an admitted meth addict turned minister and rehabilitation center executive finds a home in DeFi, giving cryptocurrency trading advice starting in 2018. He hasn’t looked back since.

When asked by the Washington Post about his ascension to “crypto influencer” status (this is the actual job title he lists on LinkedIn) — with over a million subscribers on YouTube and nearly 2.7 million followers on TikTok before his account was permanently banned in February of 2022 — Ben casually remarked that he “is authentic… the same person on-camera as off-camera.”

According to BitBoy, negative thumbnails and titles on his videos have zero effect on price action.

Read more: Who is BitBoy Crypto and why does everybody hate him?

But after bringing (and subsequently dropping) a lawsuit against well-known YouTuber Atozy for speaking ill of his videos (where he often makes recommendations but is careful to end and begin every video with the blanket disclaimer of “not financial advice”) the authentic persona seems to be fading away.

Ran Neuner

Ran Neuner is an influencer, an entrepreneur, a CEO, a founder, and an investor — though you’d be hard-pressed to find anybody outside of cryptocurrency Twitter who knows it. Now an independent media personality, Ran, who has long called Johannesburg, South Africa, home, was once featured on a CNBC Africa segment called Crypto Trader, but currently distributes content under his YouTube channel Crypto Banter.

Ran got his start in marketing. In fact, he claims to have founded and operated the “largest marketing firm” on the African continent for years until selling “The Creative Counsel” to Publicis Groupe for millions.

At this point, Ran delved into cryptocurrencies — according to him by reaching out to “friends like Brock Pierce” and others — and started his fund called “OnChain Capital.” That’s when the dramatic growth began.

Ran’s YouTube and Twitter presence is indeed quite large: he has ~580,000 subscribers and ~630,000 followers, respectively. This is to suggest that there are plenty of people listening to his trading advice and accepting that he is, perhaps, an expert in the field of cryptocurrency.

But as Ran’s fame and wealth have grown, so has the scrutiny of his trading activities and public endorsements for projects. Recently, as rumors of pumping and dumping and paid endorsements have surfaced relating to his funds and personal wallets, Ran has been sending out cease and desist letters along with veiled threats of doxxing (a term used to describe unmasking anonymous individuals online) to critics and whistleblowers on Twitter.

Problem meets solution

While many crypto advocates and influencers like to speak about how decentralized cryptocurrencies are disrupting every industry and preventing government overreach, many of these same individuals will readily turn to the government to silence critics.

BitBoy tells us that at least one of his lawsuits “worked out great.” Good for him.

Indeed, Armstrong has supposedly sent out cease and desist orders and lawsuit threats to numerous people — the exact number we can’t confirm, but during a live stream he claimed, “I’ve had another lawsuit, it was behind closed doors, and it worked out great.” This suggests that Ben:

1. Regularly uses strategic lawsuits to silence anyone speaking ill of his work.

2. Has successfully used this tactic repeatedly to have videos and podcasts deleted that were causing issues for his channel and persona.

Meanwhile, Ran sent out what would be a funny letter if not for the fact that it directly threatened legal action against FatManTerra, an anonymous figure on Twitter who’s been religiously following the Luna/Terra debacle. The letter opens, “Attention Fat Man.”

Read more: Leaked doc allegedly shows how much influencers charge to shill crypto on Twitter

And this doesn’t even touch on the fact that Ran has threatened to name the face behind the Twitter account ZachXBT — the most prolific and important sleuth in the crypto industry. The reason? Zach has shown proof of Ran purchasing, giving airtime to, and then almost instantly selling stakes in numerous cryptocurrency projects — a concept that’s called pumping and dumping under any other guise.

“They invest in the worst projects, sh**ty VCs, and get a huge (equity) allocation,” Zach said, referring to the likes of Ran, BitBoy, and others. “After a year and a half of chasing (these influencers) I’m feeling frustrated, but what can you do? They’re misleading their audiences and I hope it catches up to them from a legal standpoint.”

Unfortunately, Zach and other critics and sleuths can’t just hope for repercussions for the influencers. When asked about the consistent tweets suggesting that Ran will unmask him Zach simply said, “Yeah, it feels like a threat,” (our emphasis).

Not long after this, Zach openly discussed the issues surrounding being an anonymous lone wolf cryptocurrency sleuth, with problems ranging from hostility and legal threats to workload and entitled victims:

How critics can fight back

It’s paramount that critics and sleuths, whether they’re anonymous, pseudo-anonymous, or not anonymous at all, understand their rights. Depending on where you live, you can and should be protected in any number of ways.

First, it’s important to know one’s rights before speaking out. Unfortunately, jurisdiction plays an important role when it comes to one’s ability to be prosecuted for libel or slander. For instance, England has far less forgiving definitions of libel and slander than the United States, but even in the US, which state you reside in plays a significant factor in the ability of a crypto influencer to bring lawsuits.

If you do reside in the US, many states, such as California and Texas, provide very strong anti-SLAPP (anti-Strategic Lawsuit Against Public Participation) protections, ensuring that if someone does file a lawsuit against a critic for protected speech the plaintiff will, likely, have to pay for legal fees (and possibly more).

Nineteen states, including New Jersey and Ohio, don’t have any anti-SLAPP protections whatsoever. (The EU has anti-SLAPP legislation in the works.)

Secondly, if someone has either sent you a cease and desist or threat of a lawsuit that you feel is unjust, immediately seek out the help of a lawyer. They will, hopefully, be able to either give you a proper estimate on what it would look like to fight or guide you to another lawyer that can provide assistance.

Lastly, if you decide to make a public criticism or voice a concern, are then served with a lawsuit, and decide you want to fight it, it could be a good idea to speak up. “If this would have been public, I wouldn’t have done it,” said Ben Armstrong in a YouTube video announcing that he was dropping his lawsuit against Atozy. The backlash from publicizing a lawsuit seen by everyone as an attempt to silence a critic helped quash the threat before it could take off.

Read more: Hodlonaut receives massive support and $1M ahead of Craig Wright court cases

Know thy enemy

Since many fintech and cryptocurrency influencers are keen to categorize criticism or even just insults as brazen attacks on their brand, it’s necessary to understand what to expect when loudly exposing a serious financial malfeasance or questioning assurances. The influencers do not accept the criticisms or exposés as lessons to learn from or suggestions to be constructive, they merely see them as risks that need to be mitigated, and often the easiest method is to silence individuals with litigation intimidation tactics.

There is no surefire way to protect against influencers filing flagrant lawsuits against valid criticisms, but the best offense is a good defense — know the inherent risks involved and be prepared for the worst.

Our team has reached out to Ran and Ben with questions and will update this piece if we hear back.

For more informed news, follow us on Twitter and Google News or listen to our investigative podcast Innovated: Blockchain City.

The post The rise of the crypto influencer and the fall of truth appeared first on Protos.

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