Crypto firm Mawson Technologies is facing significant internal and legal issues after its CEO was dismissed following allegations of fraud.
Allegations Against Mewawalla
The Mawson board issued a termination notice on May 30 ‘for Cause,’ followed by administrative leave and a formal removal from the board on July 8. The Delaware lawsuit claims Mewawalla misused his position and harmed shareholders, despite previously receiving praise for boosting revenue and profitability. He had been awarded $2.5 million in bonuses and a significant stock grant earlier this year.
Leadership Transition
Mewawalla has denied any wrongdoing, stating in a letter that he ‘respectfully and vigorously’ rejects the board’s allegations and pointed to their prior public support. General counsel Kaliste Saloom has stepped in as interim CEO, tasked with navigating the company through a potentially lengthy court fight.
Additional Legal Troubles for the Company
Meanwhile, Mawson is embroiled in another legal dispute with Stone Ridge, parent of NYDIG, over control of 20,000 ASIC miners worth $30 million. Stone Ridge accuses Mawson of improperly seizing the equipment and changing payout terms, escalating a disagreement over colocation fees and energy use. Mawson now faces legal, operational, and reputational pressure, as the crypto mining industry contends with tightening margins and rising scrutiny.
The situation with Mawson Technologies highlights the growing pressures on companies in the crypto space, facing increased competition and greater legal accountability.
