Tether Sues Swan Bitcoin, Accusing the Company of Breaching Agreements Tied to Their Joint Bitcoin Mining Venture, 2040 Energy

The legal battle, confirmed by Tether and co-claimant 2040 Energy, has escalated tensions between the two companies as accusations of misconduct and corporate sabotage come to light.

Tether, the issuer of the world's largest stablecoin by market capitalization, has filed a lawsuit against Swan Bitcoin, a cryptocurrency exchange and Bitcoin mining company. The legal battle stems from a joint venture between the two companies in the Bitcoin mining sector.

According to the complaint filed in the United States District Court for the Southern District of New York on March 8, Tether and 2040 Energy, a Bitcoin mining company, are jointly suing Swan Bitcoin for breaching agreements related to their partnership in the mining venture.

The partnership, established in 2022, involved Tether funding the operations while Swan oversaw day-to-day management. However, the collaboration soured after Swan alleged that former employees from its mining division used proprietary information to establish a competing firm, Proton Management. This rival company reportedly gained Tether’s support, leading to Swan’s removal from the venture.

Swan claims key individuals orchestrated the scheme to sabotage its operations, ultimately securing Tether’s backing for Proton. Tether, meanwhile, denies any wrongdoing, asserting that it acted within its contractual rights.

In a statement to Blockworks, a Tether spokesperson said that the company "has fully complied with all contractual obligations to Swan and 2040 Energy and will continue to vigorously defend itself against these baseless claims in court."

Swan has also accused Tether of facilitating what it describes as a hostile takeover of its mining operations. These allegations include the removal of Swan’s CEO, Cory Klippsten, from his leadership role at 2040 Energy and the transfer of operational control to Proton.

Moreover, Swan alleges that Tether breached an operating agreement by failing to obtain Swan’s consent before removing Klippsten as CEO of 2040 Energy and transferring operational control to Proton.

The legal battle is set to unfold as both parties present their arguments and evidence in court. The outcome of the case will determine the fate of the joint venture and the future relationship between Tether and Swan Bitcoin.