TLDR
- Swan Bitcoin has filed a court application to subpoena Cantor Fitzgerald and former CEO Howard Lutnick.
- The subpoena request relates to an ongoing lawsuit over a failed Bitcoin mining venture with Tether.
- Swan Bitcoin alleges that former employees stole confidential data and launched Proton Management.
- The company claims the ex-staff persuaded Tether to cut ties and support their new firm.
- Cantor Fitzgerald previously advised Tether on its Bitcoin mining expansion efforts.
Swan Bitcoin has asked a federal court to approve subpoenas against Cantor Fitzgerald and its former CEO Howard Lutnick. The request seeks documents tied to a failed Bitcoin mining venture and a dispute with former employees. The filing connects the discovery effort to an ongoing lawsuit over alleged data theft and a rival firm’s launch.
Swan Bitcoin targets Cantor and Lutnick Over Mining Venture Records
Swan Bitcoin filed an ex parte application in the Southern District of New York on Monday. The firm seeks to subpoena Cantor Fitzgerald and Howard Lutnick for documents. Swan Bitcoin believes they hold records linked to its mining venture with Tether and 2040 Energy. The company claims the materials relate to employee departures and alleged data exfiltration.
Swan Bitcoin sued several former staff members in September 2024 over the dispute. The complaint alleges they took confidential documents, resigned, and formed Proton Management within days. Swan Bitcoin claims they persuaded Tether, a funding partner, to sever ties and back the new firm. The defendants have denied the claims and argued that 2040 Energy was fully funded by Tether.
Swan Bitcoin stated in the filing that Cantor Fitzgerald advised Tether on its Bitcoin mining expansion. The firm also described Cantor as Tether’s investment banker. Swan Bitcoin alleges that Cantor likely knew about the sale of its mining assets to a Tether subsidiary. The company claims the assets were sold at an undervalued price.
Dispute Centers on “Rain and Hellfire” Plan and IPO Talks
Swan Bitcoin alleges that Michael Holmes and Raphael Zagury organized what it called the “rain and hellfire” plan. Holmes served as Swan’s former head of business development. Zagury worked as Swan’s former chief investment officer and later became Proton’s CEO. Swan Bitcoin claims the pair coordinated the employee exit and business shift.
The company also described prior discussions with Cantor Fitzgerald about a potential IPO. Swan Bitcoin said CEO Cory Klippsten met Lutnick in June 2024. The firm stated it shared a “highly confidential and proprietary slide deck” during those talks. Swan Bitcoin also showed Cantor representatives its mining facilities.
Klippsten later wrote on X that “after the mass resignations and asset diversion, Cantor broke off contact with Swan without explanation.” Cointelegraph contacted Cantor Fitzgerald for comment but received no immediate response. Lutnick now serves as the US Secretary of Commerce. Democratic Senator Elizabeth Warren has questioned him about potential conflicts of interest tied to Tether.
The lawsuit against Proton Management remains active in court. The former employees continue to deny wrongdoing in the ongoing proceedings. The subpoena application now awaits consideration in the Southern District of New York.
