Swan Bitcoin has filed an ex parte application in the U.S. District Court for the Southern District of New York asking the court to compel Cantor Fitzgerald and its former CEO, Howard Lutnick, to produce documents tied to a failed crypto-mining venture and an alleged coordinated employee departure. The request, filed Monday, seeks records Swan says could shed light on its partnership with Tether and the disputed 2040 Energy project.
The move follows a September 2024 lawsuit by Swan against several former staffers, which accuses them of stealing confidential materials, resigning en masse, and immediately launching a rival firm, Proton Management. Swan alleges the ex-employees then convinced Tether — previously a Swan funding partner — to cut ties with Swan and work with Proton. Swan says the plot was internally referred to as “rain and hellfire.”
Swan’s subpoena bid targets Cantor and Lutnick on the ground that the investment bank advised Tether on its mining strategy and therefore may possess communications and transaction documents about an allegedly undervalued sale of Swan’s mining assets to a Tether subsidiary. Swan also says CEO Cory Klippsten met with Lutnick in June 2024 while exploring an initial public offering and considering Cantor as lead underwriter; during those discussions, Swan says it provided a confidential slide deck and hosted a tour of its mining facilities. Swan contends that Cantor ceased communications without explanation after the mass resignations and the alleged diversion of assets.
The complaint identifies former Swan executives Michael Holmes and Raphael Zagury — the latter now listed as Proton’s CEO — as organizers of the scheme. The ongoing suit against Proton Management remains active; defendants have denied Swan’s allegations and say 2040 Energy was funded entirely by Tether and thus was not Swan property.
Swan’s application for subpoenas directed at Lutnick arrives against a backdrop of scrutiny from Democratic senators, including Elizabeth Warren, over possible conflicts involving Tether. Cointelegraph contacted Cantor Fitzgerald for comment and did not receive an immediate response.