Tether and Swan Bitcoin clash over alleged contract violations
Tether and Swan Bitcoin clash in court
Tether, the issuer of the world’s most popular stablecoin, has filed a lawsuit against Bitcoin financial services company Swan Bitcoin, alleging “significant breaches” in their joint Bitcoin mining venture.
The lawsuit, brought jointly with 2040 Energy, was filed in the High Court of England and Wales, escalating tensions between the two firms, according to Cointelegtraph.
The conflict centers on 2040 Energy, a joint venture launched in 2022, where Tether provided funding while Swan Bitcoin managed operations.
According to court filings, Swan accused former employees of its mining division of stealing proprietary information and establishing a rival company, Proton Management. Swan alleges the scheme, dubbed “rain and hellfire,” included business strategies and software theft, causing irreparable harm to its ability to compete.
Hostile Takeover Allegations
Swan claimed Proton Management manipulated Tether into severing ties with Swan and assuming control of the mining venture. In August 2024, Swan CEO Cory Klippsten was removed as CEO of 2040 Energy, with Proton officially taking over operations.
Tether has denied any wrongdoing, asserting its actions adhered to contractual rights under the joint venture agreement. “Tether has consistently acted in good faith,” the company stated, accusing Swan of reckless behavior.
Adding to its troubles, Swan filed a separate lawsuit against its former legal counsel, Gibson, Dunn & Crutcher, in November 2024. Swan alleged the firm abandoned its case against Proton after taking Tether as a client, violating ethical standards.
The ongoing legal battles highlight growing tensions within the Bitcoin mining industry, with both sides claiming significant financial and reputational damage.
Bitcoin mining difficulty has increased by 0.41% to a record 111.45 trillion (T), marking the eighth consecutive rise. This highlights intense competition among miners as the network maintains stability with elevated hashrates.
