Proton Management Argues Swan Bitcoin 'Does Not Have Mining Business of Its Own'

Response to Swan's lawsuit says that the mining company at the center of the controversy was only minority-owned by the company, and not a full-fledged subsidiary.

A response filed by Proton Management to a lawsuit from Swan Bitcoin claims that the mining company at the center of the legal dispute is not fully owned by Swan.

According to Proton's legal counsel, Swan's so-called "mining business" is actually a separate entity named 2040 Energy, which is majority-owned by Tether and not by Swan. Proton's response argues that Swan only holds a minority stake in 2040 Energy.

“2040 Energy is not controlled by Swan, although Swan maintains a minority stake in the business,” the response states.

A spokesperson for Tether has previously denied any wrongdoing in the matter to CoinDesk.

Proton's response also claims that several key employees left Swan voluntarily due to their belief that the company was being mismanaged, and that these employees were subsequently hired by Proton to work on 2040 Energy.

“In early August 2024, several key employees voluntarily resigned from Swan due to their belief that the company was being mismanaged,” the response states.

Proton argues that it is enhancing the value of Swan's minority stake in 2040 Energy through its actions.

“Far from damaging Swan, Proton is enhancing the value of its minority stake in 2040 Energy,” Proton wrote in its filing.

Proton also denies using any of Swan's proprietary information or trade secrets, and argues that the information in question may belong to 2040 Energy rather than Swan.

“Swan has suffered no damage by Proton's activities,” Proton states in its response.

Proton is also seeking dismissal of the case on the grounds that it was not properly served and that California courts do not have jurisdiction over Proton, which is a British Virgin Islands company with no commercial ties to California.

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