The Wall Street Journal (WSJ) sued for defamation over false allegations in a 2023 article about Tether-Bitfinex.
The Wall Street Journal (WSJ), a longstanding pillar in financial journalism, finds itself at the heart of a legal storm. A defamation lawsuit has been lodged against its parent company, Dow Jones & Company, following a controversial article that implicated crypto entities Tether and Bitfinex in illegal activities. This legal action, filed in the Delaware Superior Court by Christopher Harborne and his firm AML Global Ltd on February 28, underscores the escalating tension between traditional media and the burgeoning cryptocurrency sector.
Christopher Harborne, a shareholder with nearly a 13% stake in Tether, and his company are challenging the accusations made in a February 2023 article by the Journal. The disputed article had cast a shadow over Bitfinex and its affiliates, suggesting their struggle to stay connected with the global banking system due to alleged illicit operations. It portrayed Harborne, a businessman with deep roots in technology investment and aviation, as a central figure in these operations. However, in a notable retraction, the Journal has since excised all references to Harborne and AML Global from its piece, adding an editor’s note without detailing the reasons behind these amendments.
Controversies
The lawsuit articulates a strong defense against the allegations of fraud, money laundering, and terrorist financing initially levied against Harborne and his company. It emphasizes that the accusations were baseless, highlighting that the Journal had access to documents which contradicted its narrative but chose to ignore them.
Despite the furor surrounding the Wall Street Journal’s reporting, Tether, the company at the center of the controversy, has demonstrated remarkable growth. Paolo Ardonio, a spokesperson for Tether, had dismissed the article as inconsequential to the company’s trajectory. Indeed, Tether’s stablecoin, USDT, saw a surge in market value, adding over $20 billion in 2023 alone. This growth came at a time when other cryptocurrencies faced instability, reflecting investor confidence in Tether’s stability and its backing by U.S. Treasury securities. The company also reported a substantial net profit of $2.85 billion in the last quarter of 2023, further solidifying its position in the crypto market.