"Wall Street Journal" was accused of defamation by Bitfinex shareholders, urgently deleted the article content to avoid misleading.

Protos reported that Christopher Harborne, a shareholder of Tether and Bitfinex, has filed a defamation lawsuit against The Wall Street Journal for allegations made a year ago that he attempted to open bank accounts for the two companies, raising money laundering concerns. The WSJ has removed the related descriptions last week.

Bitfinex Shareholders Sue Wall Street Journal

Christopher Harborne, a businessman active in the UK and Thailand and a shareholder of Tether and Bitfinex, has filed a defamation lawsuit against Dow Jones, the parent company of Wall Street Journal, over an article titled "Crypto Companies Behind Tether Used Falsified Documents and Shell Companies to Get Bank Accounts."

The WSJ article, divided into 5 sections, highlights Harborne as a significant investor in the aviation and cryptocurrency sectors, owning nearly 13% of Tether's shares:

It mentions his attempt between 2017 and 2018 to open an account at the now-bankrupt Signature Bank through his company AML Global, which was rejected due to close ties with Bitfinex, unlike the claim of affiliation with Kraken.

Additionally, it adds, "Companies behind Bitfinex in 2018 used a 'mystery middleman' to falsify documents to maintain connections with the global banking system."

Wall Street Journal Revisits Old Allegations Against Tether: Official Response Calls It Misleading and Inaccurate

At the time, Tether responded to this report by stating that WSJ's coverage based on old accusations was entirely inaccurate and misleading, while Harborne did not respond.

When the article was released, WSJ was accused of revisiting old allegations, but the motive behind this lawsuit, a year later, remains unknown.

WSJ Hastily Revises Narrative to Avoid Misunderstanding

Last week, WSJ promptly removed paragraphs related to Harborne and added clarifications to prevent any potential implications or misunderstandings.

Sections in the previous version of the article concerning Christopher Harborne and AML Global's application to Signature Bank, attempting to deceive the bank, have been deleted to avoid any potential implications or misunderstandings.

It further clarifies, "We particularly avoid AML Global being considered part of the narrative where Tether and Bitfinex companies allegedly attempted to mislead banks."

Bitfinex and Tether's Secret Strategy: Leading Stablecoin Holder Among Top Ten Bitcoin Holders Worldwide

Tether's Rapid Growth and Potential Threats

Looking back at the $99.6 billion market cap stablecoin issuer that monopolizes 70% of the stablecoin industry, Tether's reserve transparency and regulatory compliance have been under scrutiny and discussion by law enforcement agencies worldwide.

Last month, financial giant JPMorgan also expressed:

We believe Tether's continuous growth over the past few years poses significant risks to the stablecoin sector and the broader crypto ecosystem.

However, with the imminent introduction of the U.S. Stablecoin Act, Tether will inevitably need to become more transparent and comply with KYC, AML, and counterterrorism financing regulations.

JPMorgan: U.S. Stablecoin Act to Be Introduced, U.S. Can Sanction Offshore Entities, Posing Serious Challenges for Tether