Swan Bitcoin has escalated its legal fight over the collapse of its mining partnership with Tether, introducing newly spotlighted internal notes that allegedly point to a calculated effort to push the firm out of its own joint venture.
In a filing before the U.S. District Court for the Southern District of New York, Swan is seeking approval to subpoena Cantor Fitzgerald and its former CEO, Howard Lutnick, under 28 U.S.C. § 1782. The request aims to gather evidence for use in anticipated foreign proceedings tied to the dispute.
At the heart of the dispute is 2040 Energy, a Bitcoin mining venture where Swan handled day-to-day operations while Tether supplied capital. The partnership unravelled abruptly in August 2024, when 13 Swan employees resigned within hours. The company alleges that large volumes of sensitive internal data were accessed and removed around the same time.
Soon after, Tether installed a new management entity, Proton Management, reportedly staffed by the same departing employees, effectively replacing Swan’s operational role. Klippsten was later removed as CEO of the venture.
“Zagury’s notes, found on Swan’s servers, laid out a coordinated mass resignation to be executed with ‘legal cover from Tether’ and declaring that ‘Rain and hell fire needs to start.’
Zagury @alphazeta is now a Tether-appointed director at $XXI, majority-owned and controlled by… https://t.co/TIoJDs5DGI
— Cory 🦢 Real Bitcoin @ Swan.com (@CorySwan) March 26, 2026
“Rain and Hell Fire” as internal notes come to light
The latest twist comes from statements by Swan CEO Cory Klippsten, who highlighted internal planning notes allegedly written by former CIO Raphael Zagury.
According to Klippsten, the notes outlined a synchronized mass resignation strategy, described as being executed with “legal cover” from Tether. One line in particular, “Rain and hell fire needs to start”, has become central to Swan’s claims of a deliberate internal disruption.
Swan argues the documents reinforce its position that certain insiders worked alongside Tether to orchestrate a leadership and operational shake-up within the joint venture.
The subpoena application against Lutnick, who now serves as U.S. Secretary of Commerce, comes as Democratic senators like Elizabeth Warren continue to press him over potential conflicts of interest tied to Tether. Warren has reportedly sent a letter to Treasury Secretary Scott Bessent and Federal Reserve chair Jerome Powell, urging them not to bail out “cryptocurrency billionaires” with taxpayer dollars.
Power shifts and lawsuits
Swan also sued Gibson Dunn in 2024 over a legal conflict involving Tether representation. Swan further claims that Tether-appointed directors, including Giancarlo Devasini and JL van der Velde, approved the sale of key mining assets to a Tether-linked entity at what it describes as a significant discount.
Adding to the tension, Klippsten noted that Zagury now holds a director role in another Tether-backed entity associated with Jack Mallers, suggesting broader alignment beyond the original venture. If granted, Swan’s subpoena request could open access to U.S.-based evidence, potentially intensifying scrutiny around Tether’s role and setting the stage for a wider legal confrontation.
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