Tether Sues Swan Bitcoin Over Mining Joint Venture Violations

• Tether accuses Swan of violating agreements.
• Swan alleges conspiracy and embezzlement.
• Dispute evolves into “hostile takeover”.

The legal battle between Tether and Swan Bitcoin has intensified after Tether filed a lawsuit in the High Court of England and Wales. The dispute is based on allegations of “significant breaches” of commercial agreements, dating back to a partnership established in 2022 for Bitcoin mining operations through the joint venture 2040 Energy. Tether reportedly provided the necessary capital, while Swan Bitcoin was responsible for the operational management of the venture.

In a statement issued on January 15, Tether stated its position: “Tether has consistently acted in good faith, supported mutual business objectives, and adhered to all relevant agreements. On the other hand, Swan has acted recklessly, and their actions have resulted in significant breaches by them of the agreements between us. Consequently, we have been compelled to take the necessary steps to protect our investment.”

However, Swan Bitcoin has hit back with serious accusations. They claim that an internal conspiracy known as “hellfire and rain” took place, involving former employees who allegedly took proprietary information and code to form Proton Management. They also claim that this new company persuaded Tether to end the original partnership in favor of the new setup.

The conflict came to a head in August when Swan CEO Cory Klippsten was removed from his position as 2040 Energy CEO and replaced by Proton. Swan describes the move as a “hostile takeover” orchestrated with Tether’s help — an accusation Tether vehemently denies.