Tether, the prominent stablecoin issuer, has initiated legal proceedings against Swan Bitcoin, a financial services firm, over alleged breaches in their joint Bitcoin mining venture. The lawsuit, filed in the High Court of England and Wales, includes 2040 Energy as a co-claimant. Tether asserts that while it has consistently acted in good faith and adhered to all relevant agreements, Swan’s reckless actions have led to significant contract violations, necessitating this legal action to safeguard its investment.
The dispute centers on 2040 Energy, a joint Bitcoin mining initiative established by Tether and Swan in 2022. Under this partnership, Tether provided funding, while Swan managed operations. Tensions escalated when Swan accused former employees of misappropriating proprietary information to establish a competing firm, Proton Management. Swan alleges that these individuals orchestrated a scheme, referred to as “rain and hellfire,” to undermine Swan’s role in the joint venture, subsequently persuading Tether to collaborate with Proton instead.
In response to these developments, Swan Bitcoin filed a lawsuit against its former employees in September 2024, accusing them of stealing software code and business strategies to form Proton Management. Swan contends that this alleged conspiracy has irreparably harmed its competitive position in the market. Additionally, in November 2024, Swan initiated legal action against its law firm, Gibson, Dunn & Crutcher, accusing it of malpractice after the firm took on Tether as a client, which Swan claims led to a conflict of interest and abandonment of its case against Proton.
As the legal battle intensifies, both Tether and Swan Bitcoin are preparing to defend their positions vigorously. The outcome of this case could have significant implications for partnerships and operations within the cryptocurrency mining sector, highlighting the complexities and challenges inherent in collaborative ventures in the rapidly evolving crypto industry.
