Litigation Initiated: Defamation Claims Against Wall Street Journal Regarding Article on Tether-Bitfinex

The Wall Street Journal is currently embroiled in a defamation lawsuit due to an article published in March 2023, which accused a Thai-based aviation fuel broker, Christopher Harborne, and his company, AML Global Ltd., of engaging in illicit activities in connection with stablecoin issuer Tether and the crypto exchange Bitfinex. Harborne filed the lawsuit in Delaware state court on February 28, claiming the article falsely accused him of fraud, money laundering, and financing terrorism.

The article in question suggested that Tether and Bitfinex struggled to maintain access to the global banking system and allegedly used dubious methods, including shadowy intermediaries, falsified documents, and shell companies, to regain access. The Wall Street Journal pointed out that some of these accounts were supposedly involved in illegal activities, implicating Harborne and AML in these practices.

However, an editor’s note added on February 21, 2024, a week before the lawsuit was filed, stated that the section mentioning Harborne and AML was removed. This amendment was made to clarify that there was no intention to suggest their involvement in misleading banks or in any misinformation activities during the account application process. The Wall Street Journal, after receiving a dispute from Harborne’s counsel, removed the disputed section and stated their commitment to a strong legal defense, emphasizing their dedication to journalistic integrity.

Harborne, in his lawsuit, clarified his position as a minority shareholder in Bitfinex, stemming from a reimbursement plan related to a 2016 hack of the exchange. He affirmed that he has never held any management or executive role in either Bitfinex or Tether.

Additionally, the lawsuit mentions another Wall Street Journal article published last year, which alleged that Hamas had raised significant funds in cryptocurrency for militant activities against Israel. This claim was later contested by blockchain analytics company Elliptic, which found no evidence supporting the assertion of significant crypto donations to Hamas. This example further complicates the discourse around cryptocurrency’s role in illicit financing and highlights the challenges in accurately reporting on the complex intersections of technology, finance, and security.