Court Documents Reveal Swan Bitcoin Brokerage Service Was Funded by Ripple

Swan Bitcoin, a company focused on Bitcoin financial services, accepted funding from Ripple Labs, the company behind XRP, according to legal and financial records recently brought to light by Blockspace Media. This development has stirred controversy, especially given Swan’s public criticism of Ripple in the past.

The situation unfolds amid a complex legal battle involving Swan, Ripple, and stablecoin issuer Tether, with court documents shedding new layers of detail on their strained relationships. Tether has accused Swan of breaching their joint Bitcoin mining venture, called 2040 Energy, by securing financing from Ripple, a company Tether views as a competitor after its stablecoin launch in December 2024. These allegations form part of Tether’s lawsuit against Swan, filed in a U.K. court in January, though certain injunctions sought by Tether were denied on February 26, 2025.

The backstory according to Blockspace Media who uncovered these details, begins with Swan and Tether’s partnership in 2040 Energy, established in June 2023 to pursue Bitcoin mining. Tether invested heavily, contributing $408.22 million by June 2024, while Swan managed operations. Court records indicate that Swan owned 2,000 of the venture’s 10,000 shares, with Tether holding 7,900 and media personality Max Keiser owning 100.

Despite this collaboration, tensions emerged. Tether claims that on March 28, 2024, Swan pledged its 2040 Energy stake as collateral for financing from Ripple, an action Tether argues violated their agreement. Supporting this, a Uniform Commercial Code filing from 2024, lists Swan’s parent company, Electric Solidus Holdings, as the debtor and Ripple as the secured party. An amended filing from September 2024, later excluded the 2040 Energy shares from the collateral, though the original terms remain unclear due to limited access to the initial document. The financing arrangement with Ripple reportedly ended by October 31, 2024.

Adding intrigue, Swan’s CEO Cory Klippsten had previously taken a hard stance against Ripple. On social media, he labeled XRP, a fraudulent scheme and criticized its co-founder Chris Larsen. This public hostility stands in contrast to Swan’s decision to seek Ripple’s financial support, a move now under scrutiny in both U.K. and U.S. courts. Across the Atlantic, Swan initiated its own legal action in September 2024, suing former employees in California for allegedly stealing proprietary information after leaving to form Proton Management, a firm now managing 2040 Energy for Tether. These ex-employees cited distrust in Swan’s leadership and financial instability as reasons for their departure.

Legal and Financial Tensions Escalate

The legal disputes reveal deeper issues in Swan and Tether’s partnership. Tether’s U.K. lawsuit sought to block Swan’s California case, arguing it violated an exclusive jurisdiction clause tied to 2040 Energy. Swan countered that its suit targeted individuals, not Tether or the joint venture, rendering the clause irrelevant. The U.K. court agreed, rejecting Tether’s injunction request on February 26, 2025. Separately, Tether attempted to freeze $33.1 million in 2040 Energy assets held in BitGo accounts, claiming Swan controlled them without authorization. That request was also dismissed after Swan transferred control to 2040 Energy, though the court ordered Tether to cover £90,000 of Swan’s legal fees.

Swan’s financial maneuvers extend beyond Ripple. Tether alleges Swan set up two entities, Corner Energy Ltd. and Corner Norway AS, in 2023 and 2024 to conduct 2040 Energy business without Tether’s knowledge, securing agreements for mining sites across multiple regions. Meanwhile, Swan faced cash flow challenges as early as August 2023, prompting Klippsten to seek additional funding from Tether. When Tether declined to lead a $100-125 million raise in 2024, Swan turned to Ripple. By July 2024, Swan laid off 45% of its staff and abandoned IPO plans, with Klippsten citing the lack of mining revenue as a key factor. This followed an unsuccessful proposal to create a new entity, 2140 Energy, aimed at generating earlier cash flow from mining operations. In addition, Swan caught some heat for attempting to raise funds by forcing users to pay admin fees on their accounts.

The fallout continues to unfold too. Swan’s mining team resigned in August 2024, joining Proton Management, while Klippsten stepped down as 2040 Energy’s CEO around the same time. The company’s Series C fundraising efforts collapsed, adjusting from a $75 million target at a $1.2 billion valuation to $30 million at $300 million, yet still failing to secure investors. Swan has also been on the brink of bankruptcy, as discovered in another legal matter involving Prime Trust. Tether accuses Klippsten of misrepresenting 2040 Energy revenue as Swan’s own to bolster its financial image, a claim Swan’s auditors reportedly blocked.