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Tether Sues Swan Bitcoin Over Alleged Breaches in Mining Venture Dispute

Tether Sues Swan Bitcoin Over Alleged Breaches in Mining Venture Dispute

Tether has filed a lawsuit against Swan Bitcoin, alleging serious contract violations in their shared Bitcoin mining venture, 2040 Energy, which was established in 2022.

The case, submitted to the High Court of England and Wales, highlights escalating tensions between the two companies over the management of the joint project.

Tether, alongside co-claimant 2040 Energy, accuses Swan Bitcoin of recklessness and significant breaches of their agreements, asserting that legal action was necessary to protect its investments. According to Tether, the partnership involved its financial backing while Swan handled operational duties. However, the relationship deteriorated amid accusations of misconduct and betrayal.

Central to the dispute is an alleged scheme by Swan’s former mining division employees to steal proprietary information and launch a competing company, Proton Management. The alleged plot, termed “rain and hellfire,” reportedly aimed to damage Swan’s standing in the joint venture and persuade Tether to shift its support to Proton.


READ MORE: Ripple CEO Blasts SEC as XRP Hits $3 Amid Legal Appeal


Swan contends that Proton misused its trade secrets to harm its market position and claims this led to a breakdown in trust. By August 2024, Swan CEO Cory Klippsten was removed from his role at 2040 Energy, with Proton taking control of the mining operations.

This legal battle underscores the growing challenges in the crypto mining industry as competition and accusations of corporate misconduct intensify.

Author
Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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