Swan Bitcoin Files Lawsuit Against Ex-Staff for Data Theft

Swan Bitcoin Accuses Ex-Staff of Trade Secrets Misuse and Theft

Swan Bitcoin, a company specializing in Bitcoin financial services, has filed a lawsuit against several former employees from its mining division, accusing them of stealing proprietary software to start a rival business. The lawsuit, filed on September 25, 2024, claims that these ex-employees formed a new company called Proton Management and convinced Tether, a key funding partner, to end its collaboration with Swan.

Alleged Plan to Disrupt Swan’s Business

According to the lawsuit, Swan alleges that Michael Holmes, its former Head of Business Development, led a scheme called “rain and hellfire” aimed at taking over Swan's mining operations. Raphael Zagury, the former Chief Investment Officer, is now the CEO of Proton, the new rival company.

The lawsuit claims that Swan was caught off guard by the sudden resignation of several key employees on August 8 and 9. Soon after, on August 12, Tether announced its decision to shift its mining funding agreement to Proton, further complicating Swan’s position in the competitive mining market.

Swan's Mining Ambitions at Risk

Swan had initially partnered with Tether to launch a managed mining service for institutional investors in May 2024, with a goal of reaching 100 exahashes of computing power by 2026. However, in July, CEO Cory Klippsten hinted that the mining service might face closure due to revenue struggles. Now, with Tether backing Proton, Swan’s competitive edge in the mining industry seems even more at risk.

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