Swan Bitcoin accuses Proton Management, a company founded by former employees, and Tether of conspiring to seize mining operations

Swan Bitcoin, a prominent cryptocurrency company, has filed a lawsuit accusing its former employees of attempting to hijack its Bitcoin mining operations.

According to the complaint, the ex-staff, including high-ranking executives, orchestrated a coordinated effort to damage Swan’s business by resigning together and launching a competing company named Proton Management.

The lawsuit, filed in the U.S. District Court for the Central District of California, also claims that the scheme was supported by Tether, the well-known issuer of the USDT stablecoin.

Tether allegedly provided strategic assistance in the form of a "default notice," allowing Proton to assume control of Swan’s mining operations.

Allegations of Data Theft

In its filing, Swan Bitcoin asserts that these former employees stole proprietary code from the company's mining software, as well as business information. This includes over 300 confidential documents downloaded from Swan’s Google Drive by Brett Hiley, a former vice president at the firm.

These documents reportedly contained sensitive data on mining inventory and performance, along with detailed analyses of Swan’s mining sites.

Proton's employees are also accused of luring Swan’s staff to join them, which Swan claims undermined its ability to remain competitive.

Furthermore, the complaint states that Proton sought to harm Swan’s business relationships by co-opting Swan’s financing partner, Tether.

Related reading：UK’s High Court recognizes Tether as property in landmark ruling as crypto asset becomes personal property

Tether plays key role in Swan vs. Proton lawsuit

Tether’s involvement in the situation, as outlined in the lawsuit, appears to have been critical. The complaint claims that Proton intended to use a "default notice" issued by Tether to justify its hostile takeover.

This notice would effectively enable Proton to assume control over Swan’s Bitcoin mining operations, which had previously been managed under a joint venture.

Swan’s CEO, Cory Klippsten, was allegedly targeted in the internal plot, with Proton CEO Raphael Zagury accused of inciting chaos within the company to drive Klippsten out.

Zagury, who had previously served as the head of Swan’s mining division, is said to have led efforts to destabilise the firm and position Proton as its replacement.

Swan issues permanent ban against Proton

The lawsuit calls for a permanent injunction against Proton, preventing it from interfering with Swan’s mining business. Swan is also demanding the return of the stolen equipment and confidential material.

Furthermore, the company has requested a jury trial and is seeking damages to be determined during the legal proceedings.

As of now, both Proton and Tether have declined to comment on the allegations, while Swan continues its investigation into the extent of its former employees’ actions.