The stablecoin issuer accuses Swan Bitcoin of serious contractual breaches in their Bitcoin mining joint venture.
According to reports from Cointelegraph, Tether has filed a lawsuit in the High Court of England and Wales against Swan Bitcoin, alleging “significant breaches” of commercial agreements.
The dispute traces back to a 2022 joint venture when the two companies founded 2040 Energy to conduct Bitcoin mining operations. Tether reportedly provided the funding, while Swan Bitcoin was responsible for operational management.
In a January 15 statement, Tether said:
“Tether has consistently acted in good faith, supported mutual business objectives, and adhered to all relevant agreements. Conversely, Swan has acted recklessly, and their actions have resulted in significant breaches by them of the agreements between us. Consequently, we have been compelled to take necessary measures to protect our investment.”
On the other hand, Swan Bitcoin has issued counterclaims, alleging an internal conspiracy dubbed “rain and hellfire.” According to Swan, former employees from its now-defunct mining division misappropriated proprietary information and code to establish a rival company, Proton Management, later persuading Tether to abandon the original partnership in their favor.
Tensions escalated further in August when Swan’s CEO, Cory Klippsten, was removed from leadership at 2040 Energy, with Proton taking over operational control. Swan Bitcoin has called the move a “hostile takeover” allegedly orchestrated with Tether’s complicity—accusations that Tether categorically denies.
