In a recent legal filing, Swan Bitcoin has accused several former team members of orchestrating a plot to hijack its mining operations. The lawsuit alleges that six ex-employees and consultants misused company secrets to create a rival firm, Proton Management.
The complaint suggests indirect involvement from Tether, Swan’s previous funding partner, though Tether isn’t named as a defendant. According to Swan, Tether’s advisor allegedly encouraged the employee exodus and offered support for the new venture.
This upheaval forced Swan to scrap its public offering plans and downsize significantly. The company’s valuation took a hit when expected funding from Tether didn’t materialize. Shortly after, Tether declared Swan in default of their agreement and began working with Proton Management.
Swan is pursuing legal remedies against Proton and the individuals involved. Tether maintains its innocence, emphasizing its absence from the defendant list. This case underscores the fierce rivalry and potential for internal strife in the competitive crypto-mining sector.
The outcome of this lawsuit could have far-reaching implications for how blockchain companies protect their intellectual property and manage partnerships in this rapidly evolving industry.
Swan Bitcoin Lawsuit Exposes Industry Turmoil
