Tether Lawsuits Swan Bitcoin Over Shared Bitcoin Mining Business
In an unexpected turn of events, Tether Investments Ltd., a leading cryptocurrency company, has filed a lawsuit against Swan Bitcoin, alleging "material breaches" of agreements related to their joint Bitcoin mining venture, 2040 Energy. The lawsuit, currently being heard at the British Virgin Islands High Court, was first reported by Cointelegraph.
The joint venture, established in 2022, aimed to mine cryptocurrency, with Tether providing financing and Swan overseeing the mining operations. However, the dispute revolves around the formation of Proton Management, a rival firm, which allegedly led to significant breaches of their agreements.
The formation of Proton Management, founded by Michael Holmes and Raphael Zagury, is a significant point of contention in the lawsuit. According to Tether, its founders were persuaded to break ties with Swan and support Proton instead. This move reportedly led to Swan acting recklessly, compelling Tether to take protective measures for its investments.
In a separate development, Swan had accused former employees of its mining division of stealing confidential information to establish Proton Management. The closure of Swan's Bitcoin mining business was announced in July 2023, with Swan alleging a "hostile takeover" of its stake in the mining joint venture.
Despite the ongoing legal battle, Tether maintains it has acted with good faith throughout the collaboration. As of July 2025, no recent public disclosures nor detailed news summaries specifically elaborate on the exact nature of the disagreement or the parties' claims and defenses.
In the six months leading up to the dispute, Swan's mining division had mined approximately 750 BTC, reaching a hash rate of 4.5 EH/s (around 1% of Bitcoin's global network) in January 2024. The precise details of the dispute remain undisclosed, leaving the future of the Bitcoin mining industry and the two companies in question uncertain.
This ongoing legal battle between Tether Investments Ltd. and Cory Klippsten of Swan Bitcoin promises to be a significant event in the cryptocurrency world, with the outcome potentially shaping the future of Bitcoin mining ventures.
The joint Bitcoin mining venture, established in 2022, involved Tether providing financing and Swan overseeing the operations, leveraging technology to mine cryptocurrency. However, the lawsuit filed at the British Virgin Islands High Court alleges that Swan's questionable actions, stemming from the formation of Proton Management, resulted in material breaches of their agreements, impacting the overall finance and technology sectors within the cryptocurrency industry.
