Proton Management has filed a motion to dismiss a lawsuit against Swan Bitcoin, arguing that the claims are fundamentally flawed.
Proton Management has filed a motion to dismiss a lawsuit filed against it by Swan Bitcoin. They argue that the claims are fundamentally flawed. The lawsuit, filed on September 25, alleges that Proton and its affiliated entity, 2040 Energy, engaged in a scheme to embezzle Swan’s mining operations through what Swan called a “rain and hellfire” scheme.
Proton claims that Swan Bitcoin does not own a mining company and asserts that 2040 Energy operates as a separate entity fully funded by Tether, a stablecoin issuer. In their motion, Proton described Swan’s claims as “fatally flawed,” designed to tarnish the reputations of former employees and gain leverage in disputes with Tether. The dispute intensified following a wave of redundancies at Swan in August, many of whom have since joined Proton. Swan’s lawsuit identifies Michael Holmes, former head of Business Development, as a key figure in the alleged scheme, while Proton CEO Raphael Zagury previously held the positions of Chief Investment Officer and head of mining at Swan.
Swan is seeking a permanent injunction against Proton, aiming to prevent further disruption to its Bitcoin mining operations. The company is also demanding the return of allegedly stolen equipment and confidential materials. A jury trial has been requested, with damages to be determined during the proceedings.
Proton has further challenged the jurisdiction of the California court hearing the case, noting that it is based in the British Virgin Islands. The motion states that Swan’s ex parte applications should be dismissed on these grounds.
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