Update Oct. 4 at 2:00am UTC: This article has been up to this point to include an announcement from a Swan Bitcoin spokesperson.
The Bitcoin mining firm accused by Swan Bitcoin of stealing its mining industry by a “rain and hellfire” scheme has denied the allegations, and is seeking the case to be pushed aside.
In a Sept. 30 circulation to push apart, Proton Management talked about accusations made by Swan are “fatally flawed” because it “doesn’t include a mining industry” to initiate with.
Proton talked about the Bitcoin mining industry, 2040 Vitality, used to be a separate entity fully funded by stablecoin issuer Tether, declaring:
“Swan’s filings seem like nothing more than ‘litigation by ambush’ to disparage its dilapidated staff and contractors in command to make leverage in its dispute with Tether.”
Proton moreover refuted accusations that it aged Swan’s proprietary recordsdata or commerce secrets and ways.
“It is rather questionable whether or now not any of the details identified in Swan’s grievance if fact be told belongs to Swan moderately than 2040 Vitality,” Proton added.
However a Swan Bitcoin representatively refuted the claims in a camouflage to Cointelegraph:
“Alex Holmes established a Caribbean company so he and other Swan personnel would possibly per chance per chance procedure a “rain and hellfire” scheme to steal that very industry —as clearly detailed in Swan’s grievance.”
Proton used to be basically based at a time when Swan’s monetary place used to be so “precarious” that it had to habits a lustrous spherical of layoffs in July 2024, Proton talked about.
Outdated experiences demonstrate that Swan moreover announced plans to shut down its managed mining industry with Tether around this time.
Proton acknowledged Swan has a “minority” stake in 2040 Vitality — earlier than claiming it is in total helping Swan by keeping and per chance even enhancing its tag.
Proton extra argued that Swan’s ex parte applications needs to be denied since the California court docket it filed lacks private jurisdiction over Proton, which is integrated in the British Virgin Islands.
Excerpt from Proton Management’s response to Swan Bitcoin’s lawsuit. Offer: CourtListener
Cointelegraph reached out to Swan for insist however didn’t receive a trusty away response.
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Swan first launched a lawsuit in opposition to Proton on Sept. 25.
The lawsuit pointed the finger at Swan’s dilapidated Head of Enterprise Trend, Michael Holmes, as Proton’s “ringleader,” whereas its dilapidated chief funding officer and mining head, Raphael Zagury, is Proton’s CEO.
Klippsten’s firm talked about it used to be “blindsided” by a spree of resignation letters in August, noting many of these that resigned now work at Proton.
However, the an analogous ex-Swan staff remark the resignations had been resulting from Swan’s “mismanagement” — which they claim negatively impacted 2040 Vitality’s operations and future increase.
Swan is looking for a everlasting injunction in opposition to Proton to dwell it from extra disrupting Swan’s Bitcoin mining industry and is moreover asking the court docket to compel its ex-staff to map relief stolen instruments and “confidential field fabric.”
Swan requested the court docket for a jury trial and for damages to be constructive at trial.
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