Tether Sues Swan Bitcoin Over Mining Venture Dispute
Stablecoin giant Tether has brought a lawsuit against Swan Bitcoin in the High Court of England and Wales due to "major violations" of their commercial agreements.
- The dispute centers around the 2022 Bitcoin mining joint venture, 2040 Energy. Tether is reported to have provided full funding and owns 80% of the venture, while Swan operated the international mining team and holds a 20% ownership stake. The case is now advancing in the High Court of England and Wales.
"Throughout our relationship with Swan, Tether has consistently acted in good faith, supported mutual business objectives, and adhered to all relevant agreements. Conversely, Swan has acted recklessly, and their actions have resulted in significant breaches by them of the agreements between us. Consequently, we have been compelled to take necessary measures to protect our investment," said Tether in a statement.
- Last September, Swan Bitcoin filed a lawsuit its former mining employees and contractors. The suit accused them of breaching contracts and stealing proprietary information to establish Proton Management, which now oversees Bitcoin mining assets with Tether.
- By August 2024, Swan CEO Cory Klippsten was removed as CEO of 2040 Energy, and Proton officially took control of the mining operations. Swan's lawsuit describes the employees' departure as a corporate coup, alleging a conspiracy by key personnel.
- Swan alleges that the plan was executed by key figures, including Alex Holmes, the former head of business development, and Raphael Zagury, who previously served as the chief investment officer and head of mining and is now the CEO of Proton Management. According to court documents, Swan claims that Proton Management convinced Tether to end its partnership with Swan and back Proton in the mining venture instead.
"Swan will vigorously defend all its rights," the company's spokesperson told Blockspace Media.
- The UK lawsuit marks Tether's first legal action against Swan.
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