Key Points
- Swan Bitcoin pursues federal court authorization to subpoena Cantor Fitzgerald and Howard Lutnick.
- The legal request connects to litigation concerning a dissolved Bitcoin mining partnership with Tether.
- Swan Bitcoin accuses departed staff members of misappropriating proprietary information before establishing Proton Management.
- The firm asserts former personnel influenced Tether to terminate their relationship and finance the competing entity.
- Cantor Fitzgerald served as an advisory partner to Tether during its Bitcoin mining expansion initiatives.
Swan Bitcoin has submitted a formal request to a federal court seeking authorization to issue subpoenas to Cantor Fitzgerald and Howard Lutnick, the financial firm’s previous chief executive. The motion aims to obtain documentation related to a terminated Bitcoin mining partnership and conflicts with former personnel. This legal action forms part of continuing litigation involving accusations of proprietary data misappropriation and the establishment of a competing business.
Legal Motion Targets Financial Records From Cantor and Former Leadership
On Monday, Swan Bitcoin submitted an ex parte motion in the Southern District of New York federal court. The application requests judicial permission to compel Cantor Fitzgerald and Howard Lutnick to produce relevant documents. Swan Bitcoin maintains these entities possess critical records concerning its mining collaboration with Tether and 2040 Energy. The company asserts these materials directly relate to personnel departures and suspected confidential data removal.
In September 2024, Swan Bitcoin initiated legal proceedings against multiple former employees regarding this matter. The lawsuit contends these individuals obtained sensitive corporate documents, submitted resignations, and established Proton Management shortly thereafter. Swan Bitcoin maintains the former staff convinced Tether, which had provided financial backing, to abandon their partnership and support the newly created competitor. The accused parties have rejected these allegations and contend that 2040 Energy received complete funding exclusively from Tether.
According to Swan Bitcoin’s court filing, Cantor Fitzgerald provided strategic guidance to Tether regarding Bitcoin mining growth strategies. The filing characterizes Cantor as serving in the capacity of investment banker for Tether. Swan Bitcoin contends that Cantor possessed knowledge regarding the transfer of its mining operations to a Tether-controlled subsidiary. The company maintains these assets changed hands at a significantly reduced valuation.
Legal Claims Reference Coordinated Departure Strategy and Public Offering Negotiations
Swan Bitcoin contends that Michael Holmes and Raphael Zagury orchestrated a coordinated strategy the company labeled the “rain and hellfire” plan. Holmes previously held the position of head of business development at Swan. Zagury served as Swan’s former chief investment officer before assuming the CEO role at Proton. Swan Bitcoin alleges the two executives synchronized the employee departures and business transition.
The company additionally referenced previous conversations with Cantor Fitzgerald concerning a possible initial public offering. Swan Bitcoin stated that CEO Cory Klippsten held meetings with Lutnick during June 2024. The firm indicated it disclosed a “highly confidential and proprietary slide deck” throughout these discussions. Swan Bitcoin also provided Cantor representatives with access to its mining operations.
Klippsten subsequently posted on X that “after the mass resignations and asset diversion, Cantor broke off contact with Swan without explanation.” Cointelegraph reached out to Cantor Fitzgerald for comment but has yet to receive a response. Lutnick currently holds the position of US Secretary of Commerce. Democratic Senator Elizabeth Warren has raised questions regarding possible conflicts of interest connected to Tether.
The litigation against Proton Management continues to progress through the judicial system. The former employees maintain their innocence throughout the ongoing legal proceedings. The subpoena request currently awaits judicial review in the Southern District of New York.
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