Swan Bitcoin targets Cantor and Lutnick in Tether mining fight

Swan Bitcoin has asked a New York court for permission to subpoena Cantor Fitzgerald and its former chief executive, Howard Lutnick, as part of a legal fight over a failed Bitcoin mining venture. 

The request links the dispute to Swan’s claims that former employees left the company, took internal material, and later worked with Tether on a competing operation.

Swan filed the application in the Southern District of New York on Monday. The company said it wants discovery from Cantor Fitzgerald and Lutnick because they may hold documents tied to Swan’s former mining business with Tether, known as 2040 Energy.

The case comes from a lawsuit Swan filed in September 2024 against several former staff members. Swan claimed the group resigned, took confidential documents, and then launched Proton Management days later. The company also alleged that the former employees pushed Tether to end its relationship with Swan and back their new venture instead.

Swan’s filing said Cantor Fitzgerald may have knowledge of events surrounding the sale of Swan’s mining assets to a Tether subsidiary. Swan argued that Cantor’s advisory role with Tether and its work in Bitcoin mining may place it near documents relevant to the dispute.

The filing also drew attention because Lutnick now serves as US secretary of commerce. Swan’s move comes as Democratic senators, including Elizabeth Warren, continue to question Lutnick over possible conflicts tied to Tether. Swan has not accused Lutnick of wrongdoing in the filing described here, but it said his records may matter to the case.

Moreover, Swan chief executive Cory Klippsten said he met Lutnick in June 2024 while Swan was considering an initial public offering. Swan said Cantor Fitzgerald wanted to serve as lead investment banker, and during those talks the company shared a “highly confidential and proprietary slide deck” and showed its mining facilities.

Klippsten later said Cantor stopped communicating with Swan after the employee exits and the disputed asset transfer. He wrote that Cantor “broke off contact” with Swan without explanation. 

Former employees reject Swan’s claims

Swan said former business development head Michael Holmes and former chief investment officer Raphael Zagury organized what it called the “rain and hellfire” plan. Zagury later became Proton’s chief executive, according to Swan’s court claims.

The defendants have denied Swan’s allegations. They argued that 2040 Energy did not belong to Swan because Tether fully funded the venture. The lawsuit against Proton Management remains ongoing.