Christopher Harborne and AML Global Ltd Accuse WSJ of Defamation Following Allegations of Fraud and Money Laundering
The Wall Street Journal finds itself at the center of a legal controversy following allegations made in a 2023 article involving cryptocurrency companies Tether and Bitfinex in illegal activities. Over a year after mentioning fraud and money laundering operations associated with Tether and Bitfinex, the newspaper recently removed any mention of Christopher Harborne and his company from the incriminating article.
The Genesis of a Legal Case
Christopher Harborne and his company AML Global Ltd have allegedly filed a defamation lawsuit against Dow Jones & Company, the parent entity of the Wall Street Journal, submitting a complaint to the Delaware Superior Court on February 28th. Harborne, a shareholder of stablecoin issuer Tether with a stake of nearly 13% in the cryptocurrency firm, claims to hold no executive position within it. His involvement is said to stem from a reimbursement plan by Bitfinex following a 2016 hack.
Accusations Against Harborne and AML Global
The article in question, published in February 2023, described how the companies behind the Bitfinex exchange “were struggling to maintain access to the global banking system” in late 2018. Based on emails and documents, the report suggested that Bitfinex supporters were using dubious intermediaries, forged documents, and shell companies to reintegrate into the system.
Harborne was portrayed as a British and Thai citizen, a businessman and technology investor with significant investments in aviation and cryptocurrency, living and working in Thailand for over two decades. The article dedicated at least five paragraphs to Harborne and AML Global’s account request with Signature Bank, content that was later removed from the article on February 21st, 2024, with the addition of an editorial note:
A previous version of this article contained a section regarding Christopher Harborne and AML Global, who sought to open an account at Signature Bank. This section has been removed to avoid any potential implication that AML’s attempt to open an account at this bank was part of an effort by Tether, Bitfinex, or related entities to deceive banks, or that Harborne or AML concealed or falsified information during the process.
Wall Street Journal
Tether’s Reaction and the Growth of USDT
Upon the publication of the article in 2023, Paolo Ardoino, CTO of Tether, referred to the report as “ridiculous,” arguing that it would only fuel the company’s growth. Tether’s stablecoin, USDT, experienced significant growth in 2023, gaining over $20 billion in market value while its competitors struggled against the contagion effects of the US financial system.
Tether reported a net profit of $2.85 billion in the fourth quarter of 2023, largely due to passive income from US Treasury-backed securities supporting its reserves – staggering figures indeed.
