Swan Bitcoin has filed a lawsuit against its former employees, accusing them of misappropriating its software to establish a competing business.
Details of the Lawsuit
The lawsuit, filed in the U.S. District Court for the Central District of California, alleges that the former employees stole Swan Bitcoin’s software code to form Proton Management. Tether, the issuer of the USDT stablecoin, is also accused of assisting in this scheme by cutting ties with Swan and supporting Proton.
Role of the Ex-Employees
According to Swan, former Head of Business Development Michael Holmes is identified as the 'ringleader' of Proton. Raphael Zagury, who previously served as Swan’s Chief Investment Officer and Head of Mining, is now the CEO at Proton. Swan alleges that both played pivotal roles in implementing the plan to unlawfully acquire Swan's confidential business information and trade secrets.
Company's Response
Swan Bitcoin’s CEO Cory Klippsten noted that the company’s financial services revenue remains strong and that the recent events don’t impact their core business. The company will continue to investigate the alleged misappropriation and seeks a permanent injunction against Proton, as well as the return of stolen equipment and confidential materials.
Swan Bitcoin seeks to obtain a permanent court injunction against Proton and recover lost assets to prevent further disruptions to its mining operations.
