Tether (USDT-USD), the issuer of the world’s largest stablecoin, has filed a lawsuit against Swan Bitcoin, alleging “significant breaches” in their joint Bitcoin mining venture, 2040 Energy. Tether told Cointelegraph on January 15, “Throughout our relationship with Swan, Tether has consistently acted in good faith… Conversely, Swan has acted recklessly.” The case, now in the High Court of England and Wales, highlights escalating tensions between the two companies.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
What Sparked the Legal Battle?
The dispute centers on accusations from Swan that former employees stole proprietary data to launch Proton Management, a rival mining firm. Swan claims Tether facilitated a “hostile takeover” by backing Proton instead. In August 2024, Swan’s CEO Cory Klippsten was ousted from 2040 Energy, and Proton assumed operational control.
Swan Faces Legal Troubles of Its Own
Adding to Swan’s woes, the company sued its former law firm, Gibson Dunn, for malpractice after the firm allegedly abandoned Swan to represent Tether. Klippsten called the move a betrayal, accusing it of damaging Swan’s business. With tensions mounting, this lawsuit shows cutthroat nature of the Bitcoin mining world.
Investors can track their favorite cryptocurrencies on TipRanks. Click on the image below to find out more.
