Tether Files Lawsuit Against Swan Bitcoin Over Mining Joint Venture Dispute
In a significant escalation of their ongoing dispute, Tether, the stablecoin giant, has taken legal action against financial services firm Swan Bitcoin. The lawsuit filed in the High Court of England and Wales, centers around a contentious Bitcoin mining partnership known as 2040 Energy, revealing tensions that have simmered beneath the surface of their professional relationship.
Tether, along with its co-claimant 2040 Energy Limited, has accused Swan of breaching contractual obligations, leading to this legal confrontation. According to a statement from a Tether spokesperson, the company has always conducted its business with Swan in good faith, emphasizing mutual objectives and adherence to agreements. However, the narrative shifts when addressing Swan's actions, which Tether describes as reckless, leading to significant contractual breaches. "Consequently, we have been compelled to take necessary measures to protect our investment," the spokesperson added, underscoring the severity of the situation.
Swan Bitcoin, on receiving the legal notice, confirmed awareness of the lawsuit but refrained from detailed commentary, stating only that they would "vigorously defend all its rights." This response hints at a robust legal defense in the making, setting the stage for what could be a prolonged legal battle across jurisdictions.
The Roots of the Dispute
The current legal skirmish follows a prior lawsuit initiated by Swan Bitcoin against some of its former employees and contractors back in September of the previous year. In that case, Swan accused these individuals of breaching their contracts and misappropriating proprietary business information to establish Proton Management, a new firm now managing the Bitcoin mining assets alongside Tether. Notably, Tether was not named in that initial lawsuit, making this new legal action the first direct confrontation between Tether and Swan over these issues.
The crux of the dispute lies in the operations and ownership structure of 2040 Energy, a venture launched in 2022 where Tether holds an 80% stake, and Swan a mere 20%. According to insights from a 2024 Swan investor deck, Swan's profit from the venture was contingent upon 2040 Energy returning 100% of the capital invested by Tether, a condition that might have spurred tensions or strategic disagreements.
This legal saga not only highlights the complexities of partnership in the volatile Bitcoin mining sector but also questions Swan's legal standing concerning the control and profits of the mining business. Swan had portrayed the departure of its employees to Proton Management as part of a larger conspiracy, a corporate coup aimed at undermining its operations.