Swan Bitcoin drops federal suit after UK concession

A federal judge in California dismissed Swan Bitcoin’s entire lawsuit against Proton Management Ltd. and several former employees on June 1, 2026, after Swan conceded in parallel U.K. proceedings that it did not own the mining assets or trade secrets at the center of the dispute. The dismissal ends about 18 months of litigation that began in late 2024.

Swan filed the complaint in U.S. federal court alleging misappropriation of proprietary assets tied to its bitcoin mining operations. Proton disputed those claims from the start, arguing the operations in question were linked to a separate, Tether-funded entity identified in filings as 2040 Energy and not to Swan’s balance sheet. The U.K. concession that Swan did not own the underlying documents, assets or trade secrets was a key development in the case.

Court filings show the dispute followed the departure of several executives and consultants from Swan during a period the company described as operational and financial strain. Proton characterized the original suit as retaliatory.

The U.K. proceedings produced an order that permanently bars Swan from refiling the specific trade secrets claims in any jurisdiction, according to court disclosures. Proton’s legal teams at Bergeson LLP and Goodwin said the federal dismissal closed the U.S. phase of the litigation.

Adam Trigg, a partner at Bergeson LLP, called the outcome a vindication: “Swan was forced to admit this crucial fact and dismiss its own case.” Amanda Russo, a partner at Goodwin, described the dismissal as “a significant victory,” adding that the case had been pursued in a forum she viewed as improper. Matthew Kanny, also a Goodwin partner, noted the defense had earlier defeated Swan’s requests for a temporary restraining order and for expedited discovery prior to the full dismissal.

Proton said it expects similar results for any future claims on the same subject matter and that it will remain focused on its mining operations and growth strategy. Swan has not issued a public statement on the dismissal.

Court records and filings from both the U.S. and U.K. proceedings will be central to any related disputes that may arise. The litigation drew attention in the bitcoin-mining sector because of the involvement of a Tether-funded structure and the questions raised about ownership documentation and trade secrets.