Proton Management responds to Swan Bitcoin’s lawsuit, claiming Swan never owned the mining business in question, which belongs to a separate entity, 2040 Energy.
In a recent court filing, Proton Management responded to allegations by Swan Bitcoin that it had conspired to steal Swan’s mining business. According to Proton’s legal team, Swan Bitcoin does not own any mining operations of its own. Instead, they argue that the mining business is operated by 2040 Energy, a separate entity funded by Tether in which Swan only holds a minority stake.
The lawsuit, filed by Swan, alleges that Proton and six former employees of Swan were involved in a scheme to take over Swan’s mining business. However, Proton’s legal response clarifies that the mining operations in question belong to 2040 Energy, not Swan Bitcoin. “Swan does not have a mining business of its own,” the filing states, emphasizing that Swan has admitted this in both its complaint and in public.
The Role of 2040 Energy and Tether
At the center of the dispute is 2040 Energy, a mining entity funded by Tether, the company behind the widely used stablecoin USDT. Proton Management argues that 2040 Energy is not under Swan Bitcoin’s control, despite Swan having a minority financial interest in the entity. Proton claims that it has been working to enhance the value of 2040 Energy, and thus indirectly increasing the value of Swan’s stake in the company. This, Proton argues, counters the claim that they are damaging Swan’s business.
Tether, which is not named as a defendant in the lawsuit, has denied any involvement in the alleged conspiracy. The company’s spokesperson previously denied any wrongdoing when responding to media inquiries.
Key Employee Resignations
In July 2024, Proton alleges that Swan Bitcoin laid off a significant number of employees due to financial struggles. By early August, several key Swan employees voluntarily resigned, citing concerns over Swan’s management. These former employees were subsequently hired by Proton to continue working on 2040 Energy’s mining operations.
Proton Management maintains that no proprietary or trade secret information belonging to Swan Bitcoin was used in their current activities. They further argue that much of the information that Swan claims was misappropriated actually belongs to 2040 Energy, not Swan itself.
Jurisdictional Dispute
In addition to denying the core allegations of the lawsuit, Proton is seeking a dismissal of the case on jurisdictional grounds. Proton, based in the British Virgin Islands, claims that California courts have no jurisdiction over the case, as the company does not have any commercial ties to the state. Proton has argued that it has not been properly served with the lawsuit, which further complicates Swan’s ability to proceed with legal action.
Conclusion
Proton Management’s legal defense rests on the claim that Swan Bitcoin does not own the mining business in question, as the operations are controlled by 2040 Energy, a separate entity funded by Tether. Proton asserts that it is working to enhance the value of 2040 Energy, indirectly benefiting Swan Bitcoin’s minority stake in the company. Furthermore, Proton is pushing for the dismissal of the case, citing a lack of jurisdiction and improper service. The legal battle between the two companies highlights the complex relationships in the crypto industry, particularly when multiple entities and stakeholders are involved in operations like mining.
