{"id":11612,"date":"2024-10-02T16:06:19","date_gmt":"2024-10-02T16:06:19","guid":{"rendered":"https:\/\/www.cryptometer.io\/news\/?p=11612"},"modified":"2024-10-02T16:06:22","modified_gmt":"2024-10-02T16:06:22","slug":"proton-seeks-dismissal-of-swan-bitcoins-fatally-flawed-lawsuit","status":"publish","type":"post","link":"https:\/\/www.cryptometer.io\/news\/proton-seeks-dismissal-of-swan-bitcoins-fatally-flawed-lawsuit\/","title":{"rendered":"Proton Seeks Dismissal of Swan Bitcoin\u2019s \u2018Fatally Flawed\u2019 Lawsuit"},"content":{"rendered":"\n<p>Proton Management, the firm accused by Swan Bitcoin of sabotaging its Bitcoin mining business, has strongly refuted the allegations and is seeking to have the case dismissed. In a motion filed on September 30, Proton argued that Swan\u2019s claims are baseless, as Swan &#8220;does not have a mining business&#8221; and that the Bitcoin mining entity in question, <strong>2040 Energy<\/strong>, is a separate company, fully funded by stablecoin issuer Tether.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Proton\u2019s Defense: A Separate Entity with No Ties to Swan<\/h3>\n\n\n\n<p>Proton Management has requested that the California court dismiss the lawsuit, emphasizing that 2040 Energy operated independently of Swan Bitcoin. The filing further stated that the lawsuit is nothing more than an attempt by Swan to gain leverage in its disputes with Tether by disparaging former employees and contractors. Proton denies using any of Swan\u2019s proprietary information or trade secrets, questioning whether any of the information mentioned in Swan&#8217;s complaint truly belongs to Swan rather than 2040 Energy.<\/p>\n\n\n\n<p>Additionally, Proton highlighted Swan\u2019s financial struggles, pointing out that Swan had conducted mass layoffs in July 2024 and planned to shut down its managed mining business with Tether. Proton also acknowledged that Swan holds only a minority stake in 2040 Energy and argued that it is actually preserving or even enhancing Swan\u2019s interests through its involvement with the company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Dispute Over Personal Jurisdiction and Employee Resignations<\/h3>\n\n\n\n<p>Proton also challenged the court&#8217;s jurisdiction, noting that it is incorporated in the British Virgin Islands and should not be subject to a California court. Proton further argued that Swan\u2019s ex parte applications should be denied based on this lack of personal jurisdiction.<\/p>\n\n\n\n<p>Swan Bitcoin originally filed its lawsuit on September 25, accusing Proton of executing a &#8220;rain and hellfire&#8221; plan to steal its Bitcoin mining business. The complaint named former Swan Head of Business Development, Michael Holmes, as a central figure in Proton\u2019s alleged plot, along with Swan\u2019s former Chief Investment Officer, Raphael Zagury, who is now Proton\u2019s CEO. Swan claimed it was blindsided by a wave of resignations in August, many of whom now work at Proton.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ex-Swan Employees Fire Back at \u2018Mismanagement\u2019 Claims<\/h3>\n\n\n\n<p>The former Swan employees now at Proton have denied any wrongdoing, instead blaming their resignations on Swan\u2019s \u201cmismanagement,\u201d which they argue hindered 2040 Energy\u2019s operations and growth prospects.<\/p>\n\n\n\n<p>Swan Bitcoin is seeking a permanent injunction to prevent Proton from further interfering with its business and has also requested that the court compel former employees to return what it alleges to be stolen equipment and confidential materials. In addition to seeking damages, Swan has asked for a jury trial to resolve the dispute.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Proton Management, the firm accused by Swan Bitcoin of sabotaging its Bitcoin mining business, has strongly refuted the allegations and is seeking to have the case dismissed. In a motion filed on September 30, Proton argued that Swan\u2019s claims are baseless, as Swan &#8220;does not have a mining business&#8221; and that the Bitcoin mining entity [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":5598,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[43],"tags":[],"class_list":{"0":"post-11612","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general-news"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Proton Seeks Dismissal of Swan Bitcoin\u2019s \u2018Fatally Flawed\u2019 Lawsuit<\/title>\n<meta name=\"description\" content=\"Proton Management, the firm accused by Swan Bitcoin of sabotaging its Bitcoin mining business, has strongly refuted 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