Nasdaq-listed Bitcoin miner Mawson Infrastructure Group Inc. has reportedly dismissed its CEO, Rahul Mewawalla, amid allegations of fraud and breach of fiduciary obligation.
The lawsuit was initiated within the Delaware Courtroom of Chancery, and the allegations vary from suspected fraudulent actions to misconduct.
Mewawalla denies wrongdoing, factors to earlier achievements
The dismissal of Rahul Mewawalla comes as a shock to many as it’s occurring months after Mawson awarded him $2.5 million in money bonuses, 1.2 million restricted inventory items, and a base wage enhance to $1.2 million, a reward for what it known as “high-performing” govt efficiency.
On Might 30, the corporate notified Mewawalla that his termination for “Trigger,” as outlined in his employment settlement, was into consideration and days down the road, the board put him on administrative go away, tapping Basic Counsel Kaliste Saloom to be interim CEO.
By July 8, the choice had been made; his board seat was revoked and the lawsuit, which accused him of fraud and fiduciary breaches, was filed in Delaware’s Courtroom of Chancery searching for to get better damages.
Mewawalla is but to touch upon or reply to Mawson’s accusations. Nonetheless, in a July 17 letter to the board, he “respectfully and vigorously” disagreed with the corporate’s model of occasions whereas highlighting the board’s personal public reward of his management earlier this 12 months.
He talked about how in current public filings, the corporate highlighted “quite a few strategic, operational, and monetary milestones achieved” whereas he was CEO, together with 36% income development, a 35% soar in gross revenue, and reductions in SG&A bills.
Mawson made headlines for being sued months in the past
The dispute between Mawson and its CEO is going on months after the corporate obtained sued by NYDIG’s guardian firm, Stone Ridge and its mining subsidiary, Consensus Colocation, accusing it of allegedly illegally acquiring over 20,000 ASIC miners valued at $30 million and utilizing them to mine Bitcoin for itself since February 28, 2025.
Consensus and Mawson had a colocation settlement established in December 2023, with plans to terminate by March 2025. Nonetheless, there have been disputes over colocation charges and entry to miners.
Mawson issued invoices totaling $1,978,000 for colocation charges and electrical energy, which Stone Ridge disputed, claiming there was a mutual settlement that there can be much less power used in the course of the ultimate month of the contract.
Mawson went so far as altering the payout tackle for the miners and revoking entry for Consensus personnel, an motion it justified by citing a provision of their settlement that Stone Ridge argues doesn’t apply.
The corporate filed the lawsuit to hunt an injunction that might restore the internet hosting settlement and has demanded that Mawson reinstate entry to the miners as a part of the removing course of. There have been no updates since then however the case has been filed with extra updates anticipated sooner or later.
