Swan Does Not Have a Mining Business of Its Own: Proton

• Proton Management alleged that Swan Bitcoin does not have its own Bitcoin mining business.
• Swan Bitcoin alleged that Proton was trying to ‘steal’ its mining entity, 2040 Energy.
• Proton stated that Swan holds a minor part in the entity, while the prime funder is Tether.

Proton Management issued a formal response to Swan Bitcoin’s lawsuit, stating that the company did not conspire with the former employees of Swan to ‘steal’ its mining business. Swan Bitcoin, filed a case against Proton stating that the latter had set its eyes on its firm – 2040 Energy. 

On Tuesday, Proton claimed that Swan does not actually own any mining operation. It further clarified that the entity was entirely funded by Tether and Swan holds a minor stake in the firm. Further, it stated that the mining activities that are mentioned in the lawsuit are those of 2040 Energy, which is allegedly owned and being improved by Proton. 

The conflict began when Swan Bitcoin alleged that Proton and six former employees, who had been with Swan till August 2023, sought to sabotage the company’s mining operation. 

According to Swan, the employees left to join Proton and continued to work on 2040 Energy’s mining operations, which Swan considered its own. In response, Proton’s legal advisors claimed that Swan’s mismanagement of finances led to subsequent losses. It further resulted in layoffs and resignations. The employees resigned on their own accord and were rehired by Proton subsequently.

Proton further added that Swan had only a minor position in the project and it was not hindered by Proton’s conduct. It also mentioned that the value of the entity was growing by continuing to grow its mining operations. The response also stated that Proton has not used any of Swan’s proprietary information or trade secrets. It further claimed that any such data would belong to 2040 Energy, not Swan.

Further complicating the situation is the participation of Tether, the financial sponsor of 2040 Energy. Although Swan filed a lawsuit, Proton had argued that Tether did not do anything wrong and it was not guilty of any misconduct. Notably, Tether itself has not been accused of the case. Further, the legal team of the stablecoin had stated that the firm has not been charged as a defendant nor has it been part of any unlawful activities. 

In its response, Proton sought to dismiss the lawsuit, arguing that the case was filed in a jurisdiction that did not cover Proton. Interestingly, Proton has its headquarters in the British Virgin Islands, while Swan Bitcoin is located in California.