Swan Bitcoin Accuses Former Employees of Trade Secrets Theft

user avatar

by Giorgi Kostiuk

2 years ago


Swan Bitcoin has filed a lawsuit against several former employees, accusing them of stealing software and trade secrets to create a competing firm called Proton Management.

Lawsuit and Allegations

On September 25, Swan Bitcoin filed a lawsuit in a Los Angeles federal court, accusing six of its former employees of conspiring to harm the company by stealing software and confidential documents. According to the filing, the employees planned to take over Swan's mining business using a scheme called “rain and hellfire” before resigning in August 2023.

Impact on Business

The lawsuit also claims that the defendants solicited key personnel and secured business deals with Swan's partners, including Tether. Tether, a key funding partner, replaced Swan with Proton on August 12, shortly after the defendants' resignations. These actions could impact Swan's future plans to increase its capacity to 100 exahashes by 2026.

Reaction and Next Steps

Swan claims to have evidence of the theft and subsequent cover-up attempts. The company is filing the lawsuit to protect its rights, accusing the employees of trade secret misappropriation, breach of contract, and aiding and abetting breach of duty of loyalty. Swan CEO Cory Klippsten has assured the community that the financial services arm of the company remains unaffected and profitable despite the ongoing legal issues.

Swan Bitcoin seeks the return of stolen equipment and confidential materials and is pursuing a permanent injunction. The company's main business continues to thrive and is not impacted by the current legal proceedings.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Other Crypto Funds Experience Significant Withdrawals

Other cryptocurrency ETF categories, including Solana and XRP, recorded significant withdrawals, indicating a broader trend of selling pressure.

user avatarSatoshi Nakamura

MEGA Plans AI Marketplace Launch for December

MEGA is set to launch an AI inference marketplace in December, allowing customers to access services from various AI model providers.

user avatarNguyen Van Long

MEGA Reduces Workforce to Shift Focus to AI Products

MEGA has laid off 20 employees as part of a restructuring to expand into artificial intelligence, moving beyond its blockchain infrastructure.

user avatarKofi Adjeman

Institutional Withdrawals from Crypto ETFs Reach Over $1 Billion

Institutional demand for crypto ETFs has weakened significantly, with US spot Bitcoin ETFs experiencing over $1 billion in withdrawals for the second consecutive week.

user avatarJesper Sørensen

Ethereum Staking Hits Record Levels Despite Price Drop

Ethereum's staking rate has surged to an all-time high of 36.3% of total supply, even as the price of ETH has fallen to around $2,000.

user avatarRajesh Kumar

Jane Street Boosts Bitcoin ETF Holdings Amid Market Changes

Jane Street has significantly increased its stake in major Bitcoin ETFs, particularly in Fidelity's Wise Origin Bitcoin Fund, reflecting strong client demand and trading activity in the Bitcoin market.

user avatarLucas Weissmann

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.