Tether, a leading stablecoin issuer, filed a lawsuit against Swan Bitcoin at the High Court of England & Wales on Jan. 15, according to an announcement shared by CryptoSlate.
Swan Stablecoin Company sued to recover its investment after claiming that Swan has violated the agreements.
Tether as stated
“Swan has acted recklessly and their actions have resulted in significant breaches by them of the agreements between us. Consequently, we have been compelled to take necessary measures to protect our investment.”
A firm headed by Paolo Ardoino has announced that it is suing along with 2040 Energy Limited, a co-claimant.
Swan Bitcoin’s CEO Corppsten Klippsten responded to the FUD that surrounded the case by saying the company was not involved. “doing great and growing fast.”
Tether, which is responsible for USDT (the largest stablecoin in terms of market capitalization), is also a company that provides financial services focusing on Bitcoin, the leading digital currency.
Short-lived relationships
The partnership between Tether and Swan Bitcoin began last May when the stablecoin issuer expanded into Bitcoin mining by leveraging Swan’s Managed Bitcoin Mining service. Tether allocated significant resources for the establishment of its mining operation through this partnership.
The relationship began to unravel in July when Swan Bitcoin ended abruptly its managed mining and its Initial Public Offerings (IPOs) plans, without providing any explanation.
Swan’s operations faced turmoil in the following months, including a lawsuit against former employees and consultants.
This Bitcoin focused company has alleged the individuals involved in the conspiracy to misuse trade secrets such as proprietary code, financial models and other business information to start a competing miner, Proton Management.
According to Swan, Tether’s advisor, Zach Lyons, played a key role in the fallout. Lyons is alleged to have encouraged Swan employees to quit, undermined their leadership and helped create Proton Management.
Swan said that these actions caused the failure of its managed mine unit, cancellation of the IPO plan, and major layoffs. Additionally, Tether’s promised $25 million funding failed to materialize, compounding the firm’s financial troubles.
While Tether is not a defendant in Swan’s lawsuit against former employees, the stablecoin issuer has denied wrongdoing. This latest lawsuit highlights that the relationship between these two companies is in a strained state.
Blockspace Media was the first to report this story.
Tether UK, Legal Author 
Oluwapelumi Adejumo
Oluwapelumi believes in the potential of Bitcoin. He gives insights into a variety of topics, including DeFi hacks, culture and mining, while pointing out the power that transformative technology has.
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Liam ‘Akiba’ Wright
Also known by “Akiba,” Liam Wright, Editor-in Chief at CryptoSlate is also the host of SlateCast. He thinks that technology decentralized has the ability to create positive and widespread change.
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