Stablecoin issuer Tether has filed a lawsuit against financial crypto company Swan Bitcoin, alleging “material breaches” of agreements related to a joint Bitcoin mining venture, Cointelegraph reports.
In 2022, the two parties formed a joint venture called 2040 Energy to mine cryptocurrency. Tether provided financing, while Swan oversaw the mining operations.
In September 2024, Swan accused former employees of its mining division of stealing confidential information to set up a rival firm, Proton Management.
The alleged Proton founders—former head of business Michael Holmes and investment director Raphael Zagury—supposedly persuaded Tether to break ties with Swan and support them instead.
According to statements, as early as August 2024, the new company officially assumed administrative functions in the mining joint venture. Swan claims that Tether aided in a “hostile takeover” of its stake.
Tether insists it has acted in good faith throughout the collaboration.
“In contrast, Swan acted recklessly, and its actions resulted in significant breaches of our agreements. Therefore, we were forced to take the necessary steps to protect our investments,” a Tether representative explained.
Context
- In January 2024, Swan revealed that its quietly launched mining division had mined 750 BTC in about six months, reaching a hash rate of 4.5 EH/s—around 1% of Bitcoin’s global network. The firm planned to scale this capacity to 8 EH/s.
- In July, Swan’s founder and CEO Cory Klippsten announced the closure of the company’s Bitcoin mining business.
Cryptol – your source for the latest news on cryptocurrencies, information technology, and decentralized solutions. Stay informed about the latest trends in the digital world.