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Swan Bitcoin lawsuit targets former executives, implicates Tether

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Swan Bitcoin has filed a lawsuit against Proton Management, a bitcoin mining firm made up of former Swan consultants, claiming that these executives “hatched and executed a ‘rain and hellfire’ plan to steal Swan’s” mining business.  Specifically, the suit alleges that several consultants who were a part of Swan’s Bitcoin mining operation allegedly planned to misappropriate Swan’s intellectual property to operate a “copycat company” that was also funded by Tether. The lawsuit includes an email that appears to show a discussion about how best to execute the exit and says, “Tether needs to send default notice.” Screenshot from the lawsuit . The Timeline According to the lawsuit, in June 2023, Swan Bitcoin CEO Cory Klippsten learned of a bitcoin mine in Australia that was trying to raise funding. He apparently discussed this opportunity with Giancarlo Devasini, the CFO of both Bitfinex and Tether, and the two agreed to ...

SafeMoon files for bankruptcy amid legal woes and executives arrest

SafeMoon, once promising, files Chapter 7 bankruptcy amid SEC fraud charges. SEC alleges executives diverted $200 million for personal use; arrests follow. Safemoon (SFM) token value drops 54% post-bankruptcy, market cap plunges from $1B to $17.18M. In a startling turn of events, decentralized finance protocol SafeMoon has filed for Chapter 7 bankruptcy amid a cascade of financial and legal challenges. This move follows the arrest of key company members by the US Department of Justice (DoJ) over allegations of misappropriating clients’ funds. The Securities and Exchange Commission (SEC) had already charged SafeMoon and its executives for defrauding customers. SafeMoon’s Chapter 7 Bankruptcy filing  The move by SafeMoon to officially file for Chapter 7 bankruptcy signals a grim outlook for the embattled cryptocurrency venture. The bankruptcy filing, submitted to the United States Bankruptcy Court in the District of Utah, comes in the wake ...