Wall Street Journal sued for defamation over fake news about crypto firms

Wall Street Journal sued for defamation over fake news about crypto firms - Industry News - News

The Wall Street Journal and the Defamation Lawsuit: A New Controversy in the Crypto Industry

The prestigious Wall Street Journal (WSJ) has found itself embroiled in a legal performance with Christopher Harborne, a shareholder of the stablecoin giant tether. The lawsuit, filed against the media titan, stems from an article published last year that portrayed Harborne and his associates in a highly unfavorable light. According to the complaint, the WSJ’s article falsely accused them of engaging in various illicit activities, including fraud, money laundering, and even financing terrorism.

The Alleged Unflattering Portrayal of Christopher Harborne and His Associates

In the contentious piece, the WSJ reported that in 2018, the team behind tether and Bitfinex were frantically seeking to preserve their banking connections amidst financial turmoil. The article suggested that these efforts led them to collaborate with questionable intermediaries and employ forged documents and ghost companies.

The Quest for Financial Solvency: Desperate Measures or Illicit Activities?

The article alleged that the team’s attempts to secure banking relationships were part of a broader, somewhat desperate strategy to survive in the global banking system. The report further claimed that these activities were masked by a complex web of forged documents and ghost companies.

The Shadow Network: Concerns over False Invoices and Contracts

Stephen Moore, the chief strategy officer of tether Holdings Ltd, was quoted in the article expressing concerns over false invoices and contracts. This revelation added to the impression that tether’s backers were involved in high-risk operations.

The Disappearing Coverage: Questions Surrounding the Journal’s Reporting

Harborne, a dual British and Thai citizen with an extensive investment portfolio in technology and aviation, was the focus of several paragraphs in the article. His efforts to open an account for AML Global with Signature Bank were highlighted extensively. However, the coverage was later removed from the WSJ’s Website, leaving many to speculate about the accuracy and motivation behind the original reporting.

tether: Adhering to World-Class Compliance Programs

tether, the stablecoin company at the center of the controversy, vehemently denied these accusations. The firm emphasized its commitment to maintaining world-class compliance programs and upholding legal standards.

Heightened Scrutiny in the Crypto Industry

The cryptocurrency industry is under increased scrutiny from U.S. law enforcement and regulatory authorities, with the Justice Department ramping up investigations into various aspects of the business. Although tether was not actively under investigation at the time the article was published, the firm maintained that it had an open dialogue with law enforcement and remained under close scrutiny.