Tether begins legal action against Swan Bitcoin in conflict mining projects

Tether has initiated legal proceedings against Swan Bitcoin, citing alleged breaches of the contract related to its joint Bitcoin mining venture, which was established in 2022 under the name 2040 Energy.

Tether has initiated legal proceedings against Swan Bitcoin, citing alleged breaches of the contract related to its joint Bitcoin mining venture, which was established in 2022 under the name 2040 Energy. Tether, along with co-plaintiff 2040 Energy, alleges that Swan Bitcoin has engaged in “significant breaches” of its agreements.

On the contrary, Tether Swan was accused of recklessness, which resulted in major violations of its contracts. Tether noted that these measures forced them to protect their investments through legal procedures.

The case was brought before the High Court of England and Wales, exacerbating the ongoing conflict between the two companies. The partnership originally saw Tether providing funding while Swan managed operations. However, tensions rose when Swan accused former employees of her 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, harming its competitive position in the market. Court documents state that Broughton convinced Tether to sever ties with Swan and ally with Broughton instead.

In August 2024, Swan’s CEO, Corey Klipsten, was removed from his position at 2040 Energy, resulting in Proton assuming control of mining operations.

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