UK Court Denies Tether's Injunction Request in Dispute With Former Partner

A UK court has rejected Tether's attempt to block Swan Bitcoin from pursuing a lawsuit in California, escalating a legal battle rooted in a collapsed cryptocurrency mining venture. The High Court dismissed Tether's claim that the lawsuit could expose sensitive business information, with Judge Bright stating Swan was "unlikely to exploit" such details competitively.

The dispute stems from a joint venture, 2040 Energy, formed in June 2023 to develop mining operations in Tasmania, Norway, and Texas. Tether held an 80% stake, while Swan owned 20%. However, tensions arose over funding disagreements, with Tether alleging Swan sought external financing from Ripple without approval after Tether declined to inject more capital. By August 2023, the venture's CEO and multiple Swan-affiliated staff had resigned.

In its UK filing, Tether argued the California case risked revealing proprietary operational strategies. Meanwhile, Swan has countersued in the U.S., accusing former employees of stealing trade secrets to benefit rival firm Proton Management. Though Tether is not a defendant, court documents suggest it "allegedly conspired" with ex-consultants to support Proton.

The rulings mark a new phase in the deteriorating partnership, with parallel lawsuits now advancing in multiple jurisdictions. Tether, issuer of the world's largest stablecoin USDT, has yet to comment publicly on the latest developments.