Swan Sues Ex-Employees and Tether Over Alleged Bitcoin Theft

Swan Bitcoin Files Lawsuit Against Former Employees and Tether

On September 27, 2023, Bitcoin company Swan took significant legal action by filing a lawsuit in the Central District of California Federal Court. The lawsuit centers around accusations that several former employees, including ex-executives, engaged in collusion with Tether, a prominent cryptocurrency company, to unlawfully seize Swan's multi-billion dollar Bitcoin mining operations.

Allegations of Conspiracy and Misappropriation

Swan's legal claims are quite severe, alleging that these former employees misappropriated crucial company assets. The lawsuit contends that the ex-employees took Swan's highly proprietary Bitcoin mining monitoring software code and other resources that are essential to the company's operations. Moreover, it is alleged that these individuals collectively resigned from their positions at Swan in order to establish a rival company named Proton Management.

Tether's Role in the Alleged Hostile Takeover

According to the lawsuit, Tether is implicated in this seemingly coordinated plan. Swan alleges that Tether issued a 'breach notice' to Swan, which purportedly provided the legal cover necessary for the ex-employees’ hostile takeover of the mining operation. This action not only undermined Swan's business but allegedly aided the former employees in their bid to compete against Swan using the resources and intellectual property they took.

Legal Demands by Swan

As part of its legal strategy, Swan is demanding a permanent injunction from the court. This injunction would prevent Proton Management from further interfering with Swan's Bitcoin mining operations. Additionally, Swan is seeking the return of stolen equipment and any 'confidential materials' that the former employees may have appropriated.

Seeking Justice Through a Jury Trial

Swan has officially requested a jury trial to address these serious allegations. The exact amount of damages being sought will be determined during the trial proceedings, indicating that Swan is prepared to seek extensive restitution for the losses incurred due to these alleged actions.

Conclusion

The lawsuit filed by Swan marks a significant development in the cryptocurrency sector, stirring discussions about intellectual property, legal compliance, and ethical standards in business practices. As this case unfolds in the court, it could have far-reaching implications for the involved parties and the wider Bitcoin mining community.