Tether sues Swan Bitcoin over Bitcoin mining venture dispute

Stablecoin issuer Tether has filed a lawsuit against Swan Bitcoin in the High Court of England and Wales.

The lawsuit alleges breaches of contract related to their joint Bitcoin (BTC) mining venture, 2040 Energy. Tether, alongside its co-claimant 2040 Energy Limited, claims Swan’s actions have violated their agreements, prompting legal action to protect their investment.

According to a report by Blockspace, Tether asserted that it has fulfilled its obligations while accusing Swan of misconduct. Swan, acknowledging the lawsuit, declined to provide detailed comments but pledged to “vigorously defend” its position.

This lawsuit marks a new escalation in a legal dispute that began in September when Swan sued former mining employees and contractors, accusing them of stealing proprietary business information to form Proton Management. 

While that lawsuit did not name Tether, the stablecoin giant’s involvement in the UK case signals deeper friction between the firms, according to the report. 

Tether’s Bitcoin mining venture

At the heart of the dispute is 2040 Energy, a mining joint venture established in 2022, in which Tether (USDT) holds an 80% stake and Swan retains 20%. 

Swan’s earnings were tied to the venture recouping all initial investments made by Tether, as outlined in court filings and investor materials.

Swan previously described the employee walkout as a “corporate coup,” alleging a conspiracy to seize control of its mining operations. Tether’s lawsuit now raises additional questions about the venture’s management and Swan’s contractual standing.