Swan Bitcoin , a financial services provider specializing in Bitcoin , has initiated legal action against its former employees linked to its mining division. The company accuses these individuals of stealing proprietary software and subsequently establishing a rival enterprise, Proton Management. Allegations suggest that the ex-employees persuaded Tether, a stablecoin issuer and one of Swan’s funding partners, to sever its ties with Swan and shift its support to Proton.
The legal complaint, filed on September 25, asserts that the defendants aimed to significantly undermine Swan’s competitive position in the market. According to the court documents, they devised a scheme referred to internally as “rain and hellfire” to usurp Swan’s operations and eliminate the company from a joint venture with Tether. The filing describes the actions of the former staff as an assault on Swan’s business, labeling the proprietary technology they absconded with as the “crown jewels” of Swan’s Bitcoin mining operations.
Prominent among the alleged conspirators are Swan’s former Head of Business Development, who is characterized as the leader of the group, and the former Chief Investment Officer and Mining Head, who now serves as the CEO of Proton. The lawsuit alleges that these individuals executed a coordinated plan to utilize stolen confidential information and trade secrets crucial for running a Bitcoin mining venture.
Swan’s management claims they were caught off guard when multiple resignation letters arrived on August 8 and 9. Shortly thereafter, on August 12, they received communication from Tether indicating that Proton would replace Swan in the mining funding agreement, a move Swan contends was supported by Tether to facilitate the takeover.
Seeking to protect its business interests, Swan is asking the court for a permanent injunction to prevent further disruptions from Proton. The company also wants a court order requiring the return of stolen equipment and confidential materials while emphasizing the need for a jury trial to determine potential damages.
