- Swan Bitcoin has accused former employees of stealing its proprietary Bitcoin mining assets
- The former staff allegedly conspired with Tether to form a competing company, Proton Management
- Swan has filed a lawsuit seeking damages and a permanent injunction against Proton
Bitcoin mining company Swan Bitcoin last week took legal action against several former executives, accusing them of stealing proprietary Bitcoin mining technology to start a rival business. The lawsuit also claims that Tether, a major player in the cryptocurrency space, aided in the plot in an attempt to boost its nascent Bitcoin mining plans. The extraordinary allegations see Swan seeking damages and an injunction to prevent further harm to its business in what could be an explosive case.
Allegations of Theft and Conspiracy
Swan Bitcoin’s allegations stem from the mass resignation of a group of former employees, including senior executives, who it alleges did so with the intention of creating a competing company, Proton Management.
The lawsuit claims that these employees took confidential information, including proprietary software code, business partnerships, and other sensitive data from Swan, which CEO Cory Klippsten called “the crown jewels of our mining operation” in a statement.
Tether Allegedly Involved
In addition to accusing its ex-staff, Swan alleges that stablecoin giant and recent entrant into the mining game, Tether, played a key role in facilitating the scheme. According to the complaint, Tether’s involvement provided financial backing and legal cover for Proton’s takeover of Swan’s mining operations. The lawsuit claims that Tether issued a “default notice” to assist in the hostile move.
Swan is seeking a permanent injunction that would prevent Proton from using the allegedly stolen information. They are also pursuing damages, accusing their former employees of severely harming Swan’s ability to compete in the Bitcoin mining space, with Klippsten calling it a “coordinated and deliberate effort to undermine our company.”
Neither Swan not Tether has responded requests for further comment.
