Tether has initiated legal action against Swan Bitcoin, citing alleged breaches of contract related to their joint Bitcoin mining venture, established in 2022 under the name 2040 Energy.
Tether has initiated legal action against Swan Bitcoin, citing alleged breaches of contract related to their joint Bitcoin mining venture, established in 2022 under the name 2040 Energy. Tether, along with co-claimant 2040 Energy, claims that Swan Bitcoin has engaged in “significant breaches” of their agreements.
In a statement to Cointelegraph on Jan. 15, Tether asserted that it has consistently acted in good faith throughout its relationship with Swan.
Conversely, Tether accused Swan of recklessness, which has allegedly led to substantial breaches of their contracts. Tether indicated that these actions compelled them to protect their investment through legal measures.
The lawsuit has been filed in the High Court of England and Wales, intensifying the ongoing conflict between the two companies. The partnership originally saw Tether providing funding while Swan managed operations. However, tensions escalated when Swan accused former employees of its mining division of stealing proprietary information to form a rival company, Proton Management.
This alleged scheme, referred to as “rain and hellfire,” aimed to undermine Swan’s position in the joint venture.
Swan Bitcoin claims that Proton misused its confidential trade secrets to compete directly with Swan, damaging its competitive standing in the market. Court documents indicate that Proton persuaded Tether to sever ties with Swan and align with Proton instead.
In August 2024, Swan CEO Cory Klippsten was removed from his position at 2040 Energy, leading to Proton assuming control over the mining operations.
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