Hold onto your hats, folks! This one's a thriller from the world of crypto drama.
Swan Bitcoin is taking a stand in court, claiming that some of its former top dogs have gone rogue. According to a lawsuit filed on September 25, these ex-employees, who now run Proton Management, are accused of pinching Swan’s secret sauce to launch a rival company, all with the backing of Tether.
Picture this: Swan Bitcoin accuses Proton Management's execs of pulling off a “rain and hellfire” strategy. They allegedly made off with Swan’s prized Bitcoin Network Operating Center (BNOC) software, along with a treasure trove of sensitive documents covering business strategies, client info, and key operational data. Talk about a high-stakes heist!
But it doesn't stop there. Swan also claims that Proton sweet-talked Tether into jumping ship and funding their new venture instead, aiming to knock Swan out of the competition. Emails cited in the lawsuit suggest Tether was all in, even plotting to send a “default notice” to Swan to tighten the screws.
The backstory kicks off in mid-2023, when Swan CEO Cory Klippsten and Tether CFO Giancarlo Devasini teamed up on a Bitcoin mining project Down Under. Swan handled the management, Tether footed the bill through its subsidiary BFX Ventures, and by July 2023, they birthed 2040 Energy, a mining outfit funded by Tether and overseen by both parties.
But by early 2024, the plot thickened. Swan’s Chief Investment Officer Raphael Zagury and some key consultants allegedly hatched a plan to wrest control of the mining biz. Talks of spinning off the mining operations started heating up, with Tether seemingly eager to back a new entity.
Come July, Zagury and Devasini reportedly sealed the deal, adding Zagury to the board of 2040 Energy and shifting assets to Proton. By early August, a wave of resignations hit Swan, and Tether dropped the bombshell that Proton would be taking over the mining agreement.
Swan says it was blindsided by this coup, accusing Proton of plotting to poach its employees and snatch its mining business. Now, Swan is fighting back, seeking a court order to stop Proton from further disrupting its operations, the return of stolen gear and confidential info, and, of course, damages to be hashed out in court.
As if that wasn’t enough, Swan has had to hit the brakes on its IPO plans and lay off staff following its exit from the mining scene. Talk about a rocky ride in the crypto world! Stay tuned, because this saga is far from over.
