Proton says it wants Swann’s bitcoin lawsuit ‘deadly’ fired.
The bitcoin mining company accused of using the “Rain and Hellfire” scheme by Swan Bitcoin has denied the charges and asked for the charges to be dismissed.
On September 30, Proton Management said Swann's allegations were “fatal” because it “doesn't have a mining business” to begin with.
Proton claims that Bitcoin mining business 2040 Energy is a separate entity fully supported by stablecoin issuer Tether.
“Swan's filings appear to be nothing more than ‘disguised litigation' to discredit his former employees and contractors in order to gain more leverage in his dispute with Tether.”
Proton has denied allegations that it used Swan's proprietary information or trade secrets.
“It is highly doubtful that any of the information disclosed in Swan's complaint is owned by Swan as opposed to 2040 Energy,” Proton added.
Proton said it had to carry out a major layoff in July 2024 when Swan's financial position became “critical”.
According to previous reports, Swan announced plans to close its Tether-managed mining business around this time.
Proton Swan He admitted he had a “minority” stake in 2040 Energy – before saying he was helping Swan protect and possibly increase its value.
Proton next argued that Swann's ex parte applications should be dismissed because the California court it filed lacks personal jurisdiction over Proton, which is incorporated in the British Virgin Islands.
Excerpted from Proton Management's Response to the Swan Bitcoin Allegation. Source: CourtListener
Cointelegraph reached out to Swann for comment but did not receive an immediate response.
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Swan first filed a lawsuit against Proton on September 25.
The allegations point the finger at Swann's former head of business development, Michael Holmes, as Proton's “chief executive” and former chief investment officer and mining chief Rafael Zaguri, who is now Proton's chief executive.
Clipston's company said it had been “blindsided” by resignation letters in August, announcing that many of those who resigned now work at Proton.
However, these same former Swan employees say their resignations are due to “mismanagement” by Swan – which has negatively impacted 2040 Energy jobs and future growth.
Swann is seeking a permanent injunction against Proton to stop it from further disrupting Swann's bitcoin mining business, and is also asking the court to compel former employees to return stolen equipment and “confidential information.”
Swann asked the court for a jury trial and to determine damages at trial.
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