Tether Sues Swan Bitcoin Over Bitcoin Mining Project Dispute

JAKARTA - USDT stablecoin publishing company Tether filed a lawsuit against Swan Bitcoin, a financial services company focused on Bitcoin. The lawsuit relates to alleged violations of partnership agreements in Bitcoin mining projects. This legal process was filed in the British and Wales High Courts, with Tether cooperating with 2040 Energy Limited as the plaintiff.

The collaboration between Tether and Swan Bitcoin began in May 2022 with the aim of developing 2040 Energy, a Bitcoin mining project that is planned to take advantage of renewable energy. However, within a year, the relationship between the two companies deteriorated and led to a lawsuit.

In July 2023, Swan Bitcoin abruptly stopped their mining business operations without providing a detailed explanation. This step was followed by the cancellation of the company's initial share offering plan (IPO).

Tensions escalated as Swan Bitcoin accused a number of its former employees, including Michael Holmes (former head of business development) and Raphael Zagury (former head of investment, who now serves as CEO of Proton Management, of conspiring to steal trading software and financial models. They allegedly founded a competing company called Proton Management.

Tether also claims that one of their advisers, Zach Lyons, is involved in encouraging Swan employees to resign and weaken Swan's leadership for Proton's benefit. In an official statement, Tether asserted, "Swan has acted recklessly, and their actions have led to significant violations of the agreement. Therefore, we were forced to take legal steps to protect our investment."

Responding to this lawsuit, Swan Bitcoin CEO Cory Klippsten remains optimistic. In his statement, he said, "Our company is in good condition and continues to grow rapidly," as quoted by Coincu, Thursday, January 16.