Key insights:
- Swan Bitcoin has filed a lawsuit against its former employees and Tether over an alleged scheme to steal its Bitcoin mining operations.
- The lawsuit says sensitive information, including proprietary software code, was stolen to establish a competing firm.
- It’s also alleged that Tether’s course of action following the en masse resignation of Swan’s executives gave the alleged theft legal cover.
Legal Action Against Tether and Former Staff by Swan Bitcoin
One of the leading Bitcoin financial service players, Swan Bitcoin, has filed a lawsuit against several of its former employees, as well as Tether, the issuer of the largest stablecoin in the world. In a lawsuit filed in the United States District Court for the Central District of California, it claimed that these individuals had conspired to seize Swan’s Bitcoin mining operations.
The lawsuit describes a coordinated effort by former executives and consultants to carry out a “rain and hellfire” scheme aimed at usurping Swan’s proprietary mining technology and key business relationships. Notably, former Chief Investment Officer Raphael Zagury and others allegedly left the company en masse in August 2023. They reportedly established a rival firm named Proton Management.
Claims of Intellectual Property Theft
Swan asserts that these former employees unlawfully took sensitive information, including proprietary code from its Bitcoin mining software. Moreover, they allegedly solicited Swan’s business partners and staff to facilitate the takeover, which Swan claims compromises its competitive standing in the Bitcoin sector.
Central to the allegations is Tether, which Swan claims played a significant role in the alleged scheme. Following the mass resignations, Tether issued a default notice, positioning Proton to assume control of Swan’s Bitcoin mining management operations. Swan argues that this action provided a legal cover for the defendants’ alleged theft.
Legal Demands from Swan Bitcoin
Swan’s legal team has expressed confidence in their case, stating that the evidence of the defendants’ theft is compelling. They are seeking a permanent injunction to prevent further disruption of Swan’s operations, the return of stolen equipment and proprietary materials, and monetary damages to be determined at trial.
The case is currently awaiting further proceedings under U.S. District Judge Wesley L. Hsu. Swan aims to safeguard its intellectual property and maintain its competitive edge in the Bitcoin mining industry, which is crucial to its business strategy.
Personal Note From MEXC Team
Check out our MEXC trading page and find out what we have to offer! There are also a ton of interesting articles to get you up to speed with the crypto world. Lastly, join our MEXC Creators project and share your opinion about everything crypto! Happy trading! Learn about interoperability now!
Join MEXC and Start Trading Today!
