On September 27, Bitcoin company Swan filed a lawsuit in the Central District of California Federal Court, alleging that former employees, including ex-executives, conspired with Tether to misappropriate its multi-billion dollar Bitcoin mining business. The lawsuit claims that these former employees improperly accessed Swan’s proprietary Bitcoin mining monitoring software, as well as vendor and business partner resources, before collectively resigning to establish a competing firm called Proton Management.

Swan contends that Tether played a crucial role in this alleged conspiracy by issuing a “breach notice” that provided “legal cover” for what the company describes as a hostile takeover. In response, Swan is seeking a permanent injunction to prevent Proton from further interfering with its mining operations. Additionally, the company demands the return of stolen equipment and confidential materials from the former employees.

Swan has requested a jury trial, with the amount of damages to be determined during the proceedings, highlighting the serious nature of the allegations and the potential impact on its business operations.