Stablecoin giant Tether is suing financial services firm Swan Bitcoin over a contract dispute related to the companies’ bitcoin mining joint venture, Blockspace has learned.
“Tether, together with its co-Claimant, 2040 Energy Limited, has recently commenced proceedings in the High Court of England and Wales against Swan,” a Tether spokesperson wrote in an email to Blockspace.
“Throughout our relationship with Swan, Tether has consistently acted in good faith, supported mutual business objectives, and adhered to all relevant agreements,” Tether claimed. “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.”
When reached by Blockspace, Swan confirmed receipt of the lawsuit but declined further comment. “Swan will vigorously defend all its rights,” the spokesperson added.
The lawsuit escalates a legal struggle that began when Swan Bitcoin sued its former mining employees and contractors last September.
Read more: Swan Bitcoin sues former employees, alleges theft of bitcoin mining business
Swan’s suit alleges that the defendants broke their contracts and stole proprietary business information when they left the company to start Proton Management, the firm that now manages the bitcoin mining assets in concert with Tether. The September suit did not name Tether or its employees as defendants, and the new suit filed in the United Kingdom is the first time the company has entered the legal arena with Swan over this issue.
The cross-jurisdictional dispute centers on the bitcoin mining joint venture 2040 Energy, which Swan Bitcoin established with Tether in 2022. According to a 2024 Swan investor deck seen by Blockspace, Tether financed the venture and owns 80% of 2040 Energy to Swan’s 20%, and Swan could only collect profit from the venture once the business line had returned 100% of invested capital to Tether.
Swan’s investor presentation and court documents from its lawsuit with Proton Management employees raise questions regarding Swan’s legal claim to the bitcoin mining business. Swan framed the walkout as a corporate coup, branding it a conspiracy orchestrated by key internal personnel.
Read more: New filings raise questions about mining ownership in Swan lawsuit
