Swan Bitcoin, a financial services firm, has filed an ex parte application in the Southern District of New York seeking to subpoena investment bank Cantor Fitzgerald and its former CEO, Howard Lutnick. The move is part of an ongoing legal battle stemming from a failed Bitcoin mining venture with Tether and an alleged coordinated exodus of former employees.
The core dispute dates back to September 2024, when Swan sued several former staff members. The lawsuit alleges these employees stole confidential documents, resigned en masse, and then founded a competing firm called Proton Management just days later. Swan claims the ex-staff then convinced Tether—a key funding partner for Swan at the time—to sever ties with Swan and instead back their new venture, a scheme they allegedly referred to as the "rain and hellfire" plan.
Swan's latest legal filing, submitted on March 24, 2026, targets Cantor Fitzgerald and Lutnick because the firm believes they possess crucial documents related to Swan's failed mining joint venture with Tether, known as 2040 Energy. Swan noted in the filing that Cantor Fitzgerald is Tether's investment banker and has advised the stablecoin issuer on its push into Bitcoin mining. Due to this link, Swan alleges Cantor likely had knowledge of the undervalued sale of Swan's crypto mining assets to a Tether subsidiary.
The application adds a political dimension as Howard Lutnick now serves as the U.S. Secretary of Commerce. The filing comes as Democratic senators, including Elizabeth Warren, have been pressing Lutnick over potential conflicts of interest related to Tether. Swan has not accused Lutnick of wrongdoing in this filing but asserts his records may be relevant.
Swan CEO Cory Klippsten stated that he met with Lutnick in June 2024, before the alleged employee scheme, as Swan was considering an initial public offering and Cantor was interested in being its lead investment banker. During these talks, Swan shared a "highly confidential and proprietary slide deck" and showed its mining facilities. Klippsten claims that "after the mass resignations and asset diversion, Cantor broke off contact with Swan without explanation."
The defendants in the original lawsuit, including former Swan business development head Michael Holmes and former chief investment officer Raphael Zagury (who became Proton's CEO), have denied Swan's allegations. They argue that 2040 Energy was not Swan's asset because it was fully funded by Tether. The case against Proton Management remains ongoing.
