Swan Bitcoin Sues Former Executives Over Alleged Theft of BTC Mining Business

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Swan Bitcoin has sued several former employees, accusing them of illegally taking highly prized components of its BTC mining business.

The financial services company also claims that Proton persuaded Tether, its financial backer, to cut ties and support it instead to “irreparably harm Swan’s ability to compete in the market.” The lawsuit outlines that the stablecoin issuer played a key role in the hostile takeover by providing “legal cover” and cites an email discussing its plan to send a “default notice” to the firm.

Tensions surfaced in early 2024 when Swan’s Chief Investment Officer Raphael Zagury and key consultants allegedly plotted to shift control of the mining business. By June, discussions to spin off the mining operations began, with Tether showing interest in backing a new entity.

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Swan Bitcoin Claims Ex-Employees 'Stole' its Mining Business at Tether’s DirectionCheyenne Ligon is a CoinDesk news reporter with a focus on crypto regulation and policy. She has no significant crypto holdings.
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