Swan Bitcoin lawsuit targets former executives, implicates Tether
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Swan Bitcoin has filed a lawsuit against Proton Management, a bitcoin mining firm made up of former Swan consultants, claiming that these executives “hatched and executed a ‘rain and hellfire’ plan to steal Swan’s” mining business. Specifically, the suit alleges that several consultants who were a part of Swan’s Bitcoin mining operation allegedly planned to misappropriate Swan’s intellectual property to operate a “copycat company” that was also funded by Tether. The lawsuit includes an email that appears to show a discussion about how best to execute the exit and says, “Tether needs to send default notice.” Screenshot from the lawsuit. The Timeline According to the lawsuit, in June 2023, Swan Bitcoin CEO Cory Klippsten learned of a bitcoin mine in Australia that was trying to raise funding. He apparently discussed this opportunity with Giancarlo Devasini, the CFO of both Bitfinex and Tether, and the two agreed to form a joint venture with Swan providing management and Tether providing financing. Additionally, the lawsuit reveals that Tether, through BFX Ventures, had previously invested in Swan. The next month, then chief investment officer for Swan, Raphael Zagury, apparently began managing the Australian mining operations. This was helped by a group of consultants and employees, many of whom now work for Proton. According to the lawsuit, near the end of July 2023, Tether subsidiary Zettahash entered into an agreement with Swan to create 2040 Energy. This entity was funded by Tether, and a poorly redacted portion of the lawsuit reveals that Tether also “controlled 2040 Energy’s board of directors.” Klippsten served as Swan’s sole director on the 2040 Energy board, and Tether CFO Giancarlo Devasini and Ludovicus Jan van der Velde (the former CEO of Tether and current CEO of Tether’s sister company, Bitfinex) served as Tether’s directors on the 2040 Energy board. In…
Filed under: News - @ September 27, 2024 10:19 am