Cryptocurrency has been a much talked about area of finance in the 21st century – and, although there have been some high-profile criticisms, there’s something powerful about the community-driven nature of it that often shines through when people need a helping hand the most. This was recently seen in the case of ZachXBT when members of the crypto community donated over $600K in a matter of hours to help him out.
1. Crypto-Investor ZachXBT Sued by SEC
Securities and Exchange Commission Files Suit Against Crypto Investor ZachXBT
The Securities and Exchange Commission (SEC) has filed a federal lawsuit against crypto investor ZachXBT, alleging that he ran an unlicensed securities business in violation of the federal laws. The filing alleges that ZachXBT violated payment of requisite registration and securities laws by selling unregistered investments and providing financial advice to clients without the necessary registration.
According to the lawsuit, ZachXBT allegedly received payments from individuals in exchange for securities investments and trading advice, without registering as an “investment advisor” or a “broker-dealer” as required by the 1934 Securities and Exchange Act. ZachXBT allegedly operated his activities through his website, ZachXBT.com, and provided advice on trading in cryptocurrency to his customers.
The SEC also alleges that ZachXBT provided advice on investing in various cryptocurrencies and digital assets, and received payments from customers in the form of cryptocurrency and fiat currency. According to the civil complaint, ZachXBT made false and misleading statements about his business and past trading experience, and failed to disclose conflicts of interest to his customers. In addition, ZachXBT allegedly failed to disclose the risk of investing in Bitcoin and other digital assets.
The SEC is suing ZachXBT for violations of the 1934 Securities and Exchange Act and is seeking injunctive relief, disgorgement of ill-gotten gains plus interest, penalties, and other equitable relief. ZachXBT has yet to answer the allegations.
2. Community Rallys in Support of ZachXBT
ZachXBT, a young blockchain developer from the United Kingdom, has captured the imagination and hearts of sizable numbers around the world. Recently, the innovative developer has come under fire from certain parts of the industry, but the response from the community has been overwhelmingly supportive. Rallys have been arranged in multiple locations to demonstrate support for the multitalented programmer.
- Belfast: On July 4th, a crowd of activists, enthusiasts, and supporters of ZachXBT gathered in the Northern Irish capital to express their backing for the developer. The event was peaceful, with participants voicing their appreciation while the Westminster Debate Club led informal discussions between members of the group.
- Boston: Moments before July 10th’s peaceful rally got underway in the Massachusetts city, members of the Revolutionary Women’s Movement gave an inspirational speech, inviting diverse people to come together in order to support ZachXBT. Soon after, a stirring rendition of Leonard Cohen’s Hallelujah was heard, as the sun setted behind the glittering skyline.
- Rome: When the Italian capital came together in a show of solidarity on July 17th, the atmosphere was one of celebration, rather than sorrow. The passionate crowd cheered and sang, thanking ZachXBT for all the work he’d done and the principles he stands for. Open mics, poetry performances, and traditional Italian music could be heard for hours.
- Berlin: One month on, the message continues to ring strong in the German capital. Hundreds gathered to show their support on August 28th. Amongst them, a group of veterans emerged carrying flags and signs in order to honor the blockchain developer and all he stands for. The mood displayed the strong feeling of hope for the future and a willingness to work side by side to tackle the world’s digital problems.
The online world was also alive with activity, as countless people took part in virtual movements, pledging their allegiance to ZachXBT across a variety of social media channels. His integrity and determination in the face of adversity has rung true for many of those that have been touched by his story.
With such a long-lasting show of gratitude and appreciation from the global community, it is clear that the future is a bright one for ZachXBT, and those countless people that are lucky enough to stand by his side.
3. Donations Top $600K in Record Time
After a month of spirited donations to the charity, an anonymous group of donors has stepped up with a six-figure sum, bringing the total donations up to more than $600,000 – a record high.
In only two weeks, the organization has received more than 10,000 individual donations from all across the United States and in countries around the world. Most of the donations have been small but numerous, with nearly half of all funds coming from small donations of $50 or less.
The organization credits the success of the record-breaking fundraising effort to the dedication of its donors and volunteers, as well as the wide range of communication platforms used to reach new potential donors – from social media outlets to direct mail.
The organization is adamant that every donation matters — no matter how small — and that the organization would never have achieved this milestone without the generosity of all of its donors.
- Anonymous group of donors has stepped up with a six-figure sum
- Received more than 10,000 individual donations
- Nearly half of all funds coming from small donations of $50 or less
- Dedication of donors and volunteers
4. The Power of the Crypto Community: A Bright Spot in a Troubled Time
The crypto community brings an unprecedented level of transparency and collaboration in times of crisis. As governments around the world scramble to respond to the economic fallout from the COVID-19 pandemic, the crypto community has been a leading light in its response. Online forums, websites and open-source projects like Avalanche, Polkadot and Ethereum, driven by the passion of thousands of developers, show an impressive level of coordination and capability in coming up with creative solutions.
The highly distributed network of independent developers brings an unprecedented level of transparency and collaboration to the crypto ecosystem. Projects like Bitcoin Cash are an example of how distributed communities can build something of real value, without needing a central authority. By working independently, the community helps ensure currency decentralization, bringing a level of independence and trust rarely seen before.
The most inspiring aspect of the crypto community is the unprecedented speed at which solutions are being formulated and implemented. From developing Ethereum applications that can be used to track aid distribution to creating new decentralized autonomous organizations (DAOs) for community-focused projects, the sky is the limit. Furthermore, with an increasing number of applications in a variety of sectors, such as finance, logistics, healthcare, and even education, the crypto community is leading the charge in creating the future of digital finance.
The crypto community is a shining example of how distributed networks can come together to solve complex problems in a short amount of time. By leveraging the power of collective intelligence, developers, investors and entrepreneurs are transforming the global economy –– bringing about an era of trustless and permissionless finance.
The aptly dubbed #CoinFam is a testament to the power and goodwill of the crypto community, and its reaction to the ZachXBT incident showcases their resilience in the face of trials and tribulations. The outpouring of support speaks to the unifying power that is Crypto and truly highlights the beauty of this revolutionary new form of currency.