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.
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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.