Tether Sues Swan Bitcoin, Alleging Contract Violations Involving Their Bitcoin Mining Company

Swan Bitcoin is being sued by Tether, a well-known stablecoin issuer, in the High Court of England and Wales. Alleged contract violations involving their joint Bitcoin mining company, 2040 Energy, are the basis for the case.

Swan Bitcoin, a popular Bitcoin-only exchange, is facing a High Court lawsuit filed by Tether, the issuer of the widely used stablecoin USDT. The legal dispute stems from alleged contract breaches related to their joint Bitcoin mining company, 2040 Energy.

According to court documents, Tether owns 80% of 2040 Energy, while Swan Bitcoin holds the remaining 20%. The partnership was established in 2022 with the goal of generating profits for Swan that would be contingent on Tether fully recovering its initial investment in the venture.

However, the partnership encountered difficulties, leading to Tether's claim that it fulfilled its contractual obligations while accusing Swan of mismanagement that ultimately harmed the joint venture.

In response to the lawsuit, Swan Bitcoin acknowledged the legal action but declined to provide specific commentary on the allegations. The company stated that it will "vigorously defend" itself against the claims.

This lawsuit adds another layer to a broader dispute that began in September, when Swan filed a separate lawsuit against former mining employees and contractors. The company alleged that they misappropriated proprietary information to form Proton Management.

While Tether was not named in Swan's earlier lawsuit, its decision to involve the UK courts now highlights unresolved tensions over the management of 2040 Energy, as reported by Blockspace.

Swan had previously characterized the employee departures as a "corporate coup," accusing them of attempting to wrest control of its mining operations. Tether's lawsuit further raises questions about Swan's adherence to their agreements and the overall handling of the venture.

The outcome of this legal battle will be closely watched by both Tether and Swan Bitcoin, with far-reaching implications beyond their financial stakes. The case also underscores the challenges of managing joint ventures in the rapidly evolving cryptocurrency space.