The Wall Street Journal, known for its esteemed reputation, is currently embroiled in a legal dispute that has sparked controversy within the crypto industry. Christopher Harborne, a shareholder of the stablecoin giant Tether, has initiated a defamation lawsuit against the media giant. The lawsuit stems from a contentious article published by the Journal last year, which portrayed Harborne and his associates in a negative light, alleging their involvement in various illicit activities such as fraud, money laundering, and even financing terrorism.
According to the article, in 2018, the masterminds behind the Bitfinex exchange were reportedly scrambling to maintain their banking relationships. The Journal claimed that in their efforts to secure financial stability, they resorted to questionable intermediaries, forged documents, and shell companies. These purported actions were depicted as part of a broader strategy to navigate the challenges of operating within the global banking system, crucial for any firm operating in the cryptocurrency sector.
Furthermore, the article referenced emails and documents that purportedly revealed the use of a clandestine network to conceal the true nature of their activities. Stephen Moore, the chief strategy officer of Tether Holdings Ltd, was cited expressing apprehensions about the utilization of fabricated sales invoices and contracts, highlighting the high stakes and potential risks involved in their banking operations.
Harborne, a dual British and Thai citizen known for his diverse investment portfolio in technology and aviation, found himself prominently featured in the article. The piece delved into his and AML Global’s efforts to establish an account with Signature Bank, dedicating at least five paragraphs to their endeavors. However, this coverage was later removed from the Journal’s website, accompanied by an editor’s note, prompting speculation about the accuracy and motives behind the original reporting.
In response to the article, Tether vehemently refuted the allegations, asserting the integrity of their “world-class compliance programs” and commitment to regulatory standards. Both Tether and Bitfinex have been influential players in the cryptocurrency market, with Tether’s stablecoin playing a pivotal role in the crypto ecosystem, often surpassing Bitcoin and Ethereum in trading volume.
The scrutiny faced by Tether and the broader cryptocurrency industry aligns with heightened investigations by U.S. law enforcement and regulatory authorities. While the Justice Department was not actively probing Tether at the time of publication, the company claimed to maintain open communication with law enforcement and remained under close scrutiny.