Proton Management has filed a motion to dismiss a lawsuit brought against it by Swan Bitcoin, arguing that the claims are fundamentally flawed.
Proton Management has filed a motion to dismiss a lawsuit brought against it by Swan Bitcoin, arguing that the claims are fundamentally flawed.
The lawsuit, initiated on September 25, alleges that Proton and its associated entity, 2040 Energy, engaged in a scheme to misappropriate Swan's mining business through what Swan termed a “rain and hellfire” plan.
Proton contends that Swan Bitcoin does not possess a mining business, asserting that 2040 Energy operates as a separate entity that is fully funded by Tether, a stablecoin issuer. In its motion, Proton described Swan's allegations as “fatally flawed”, intended to tarnish the reputations of former employees and gain leverage in disputes with Tether.
The dispute intensified following a wave of resignations from Swan in August, many of whom have since joined Proton. Swan's lawsuit identifies Michael Holmes, former Head of Business Development, as a key figure in the alleged scheme, while Raphael Zagury, Proton’s CEO, previously held the position of chief investment officer and head of mining at Swan.
Swan is seeking a permanent injunction against Proton, aiming to prevent any further disruption to its Bitcoin mining operations.
The company is also demanding the return of allegedly stolen equipment and confidential materials. A jury trial has been requested, with damages to be determined during the proceedings.
Proton has further challenged the jurisdiction of the California court handling the case, noting that it is incorporated in the British Virgin Islands. The motion claims that Swan’s ex parte applications should be rejected on these grounds.
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