Swan Bitcoin Files Lawsuit Against Its Own Lawyers

CN
4 hours ago

Cryptocurrency financial services firm Swan Bitcoin has filed a lawsuit against its own legal representative, Gibson, Dunn & Crutcher, alleging legal malpractice. In a lawsuit filed with the California Superior Court, Swan Bitcoin suggests the law firm is improperly seeking to withdraw from representing it in its trade secrets lawsuit against former employees.

Swan Bitcoin accuses the former employees, who formed the Tether-backed Proton Management, of misappropriating thousands of documents containing its trade secrets. The firm also accuses the employees of plotting to push Swan out of the joint venture with the stablecoin issuer.

As previously reported by Bitcoin.com News, Swan Bitcoin’s lawsuit accused former employees of holding undisclosed meetings with Tether prior to resigning. The lawsuit accuses the stablecoin issuer of committing to support Proton once the employees parted ways with Swan, including “legal cover.” At the time, Swan Bitcoin asserted that the alleged scheme would “irreparably harm Swan’s ability to compete in the market.”

According to a Reuters report, Gibson, Dunn & Crutcher retained attorney Barry Berke in October, who has represented Tether in the past. However, before proceeding with Berke’s hiring, the law firm reportedly informed Swan Bitcoin’s CEO that it might not be able to continue offering its services because Berke’s current clients presented a potential conflict of interest.

In addition, the law firm claims its relationship with Swan Bitcoin completely broke down after the latter filed a malpractice lawsuit against Gibson, Dunn & Crutcher. Furthermore, the law firm said the bitcoin-focused financial services firm has failed to settle its legal bill and demanded $18 million to drop its opposition to Gibson, Dunn & Crutcher’s motion to withdraw.

“Gibson Dunn cannot continue to represent Swan under these conditions,” the law firm reportedly told a U.S. judge.

In response, Swan Bitcoin notified the law firm in a letter that it opposed its attempt to withdraw as its lawyer in the lawsuit against Proton. Swan Bitcoin also instructed the law firm to drop Tether as a client or “disassociate itself from Mr. Berke and other laterals representing Tether.” As per the report, Swan Bitcoin subsequently asked a federal judge to issue a temporary restraining order blocking Gibson Dunn from dropping it as a client.

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