USDT stablecoin issuer Tether has failed to secure acourt order to block its former bitcoin mining partner, Swan Bitcoin, frompursuing a lawsuit in California, the Financial Times reported. The UK HighCourt dismissed Tether’s request for an injunction, marking another twist inthe deteriorating relationship between the two firms. The legal dispute involves a collapsed mining venturethat once promised to expand cryptocurrency infrastructure but has since turnedinto a courtroom battle over allegations of contract breaches and misuse ofproprietary information.Tether, the issuer of the widely used USDT stablecoin,and Swan Bitcoin reportedly formed a joint mining venture called 2040 Energy in June 2023.The venture aimed to establish mining operations in locations such as Tasmania,Norway, and Texas. Failed Partnership Leads to Legal DisputesAccording to court filings, Tether held an 80% stake in the company, while Swan owned the remaining 20%. However, financialstruggles and disputes over valuation led to a breakdown in their relationship.Tether accused Swan of seeking outside funding fromcrypto firm Ripple without its consent after it refused to inject additionalcapital into the project. By August, the CEO of 2040 Energy, along with severalSwan employees and consultants, had resigned, further deepening the riftbetween the companies.In its UK filing, Tether argued that Swan Bitcoincould gain access to sensitive business information through the Californialawsuit and use it for competitive advantage. The company sought an injunction to prevent Swan fromcontinuing the case against six former employees, fearing that disclosurescould expose proprietary details about its operations. However, Judge Bright dismissed Tether’s concerns,stating that Swan was unlikely to exploit any information gained from theproceedings. Swan Bitcoin’s Counterclaims in the USWhile Tether filed a lawsuit against Swan Bitcoin inJanuary for alleged contract breaches, Swan launched its own legal challenge inthe United States. The firm accused former employees of orchestrating ascheme to steal trade secrets and shift business operations to a rival firm,Proton Management. Although Tether is not directly named as a defendant,court filings suggest the company “allegedly conspired” with Swan’s formerconsultants to support the new company. With both lawsuits moving forward in differentjurisdictions, the conflict between Tether and Swan Bitcoin is far from over.This article was written by Jared Kirui at www.financemagnates.com.