Tether, a well-known stablecoin issuer, is suing Swan Bitcoin for breach of contract in their joint Bitcoin mining project, 2040 Energy. The High Court of England and Wales filed the case, highlighting the growing tensions between the two companies.
Tether claims to have constantly honored its responsibilities in the collaboration, including supplying cash and keeping to the agreed-upon parameters. In contrast, Tether accuses Swan Bitcoin of reckless behavior that violated their agreements, prompting Tether to take legal action to defend its investment.
The issue derives from allegations that Swan Bitcoin failed to manage the enterprise responsibly. Swan also claims that former employees from its mining section stole valuable knowledge, such as software and business techniques, to start a competing company, Proton Management.
Swan has described the purported scheme, known as “rain and hellfire,” as an intentional attempt to disrupt company operations. The company says that these acts, led by key former employees, allowed Proton to establish itself as a direct competitor.
According to court records, Proton successfully persuaded Tether to cut relations with Swan, giving Proton control of the mining venture. Cory Klippsten, the CEO of Swan Bitcoin, left his position at 2040 Energy in August 2024, paving the way for Proton to assume control of the mining venture.
Swan has also accused Tether of assisting a “hostile takeover” of its mining operations, escalating the conflict. Defending its actions, Tether says it acted within its contractual rights.
Swan Bitcoin has launched a separate action against its previous legal representation, claiming negligence and conflict of interest. This greater legal story emphasizes the difficulties encountered in joint ventures, as well as the risks of internal and external conflicts in commercial partnerships.
