Bitcoin mining company Mawson Infrastructure Group Inc., listed on the Nasdaq, is at the center of a major scandal. Its CEO, Rahul Mewawalla, was suddenly dismissed following allegations of fraud and breach of fiduciary duty. The case is now heading to the Delaware Court of Chancery, exposing a stormy power struggle within one of the leading crypto mining firms.

The company accused Mewawalla of serious misconduct, including fraudulent behavior and betraying shareholder trust. The move is especially surprising since just months earlier, Mawson had awarded him $2.5 million in cash, 1.2 million restricted stock units, and raised his base salary to $1.2 million as a reward for what was publicly called "high-performance" leadership.

On May 30, the company notified Mewawalla that his employment might be terminated "for cause" as defined in his contract. Days later, he was placed on administrative leave, and general counsel Kaliste Saloom stepped in as interim CEO. By July 8, it was official: Mewawalla was removed from the board, and a fraud and fiduciary breach lawsuit was filed in Delaware seeking damages.

🧾 Mewawalla Defends Himself – Cites Performance Milestones

While he hasn’t responded publicly to the allegations, a July 17 letter to the board shows Mewawalla "respectfully and firmly" disagreed with Mawson's narrative. He emphasized that the board had praised his leadership earlier this year.

He cited key milestones achieved under his tenure:

🔹 36% revenue growth

🔹 35% increase in gross profit

🔹 Significant reduction in overhead and admin costs

⚔️ Previous Dispute: Mawson vs. NYDIG and a $30M ASIC Miner Fight

This isn't the company’s only courtroom drama. Months earlier, Mawson was sued by Consensus Colocation, the mining arm of NYDIG parent Stone Ridge, over allegations that Mawson had illegally retained over 20,000 ASIC miners worth $30 million and used them for its own Bitcoin mining starting February 28, 2025.

Although a colocation agreement had been signed in December 2023, set to expire in March 2025, disputes erupted over fees and access to the mining hardware.

⚡ Disputed Invoices, Access Locks, and Changed Payout Addresses

Mawson allegedly:

🔹 Issued invoices totaling $1.978 million for electricity and hosting,

🔹 Changed mining payout addresses,

🔹 Blocked Consensus employees from accessing the equipment.

Stone Ridge claimed these actions breached their agreement. Mawson, in turn, argued it acted within its rights under the contract. Consensus has asked the court to restore the hosting agreement and access to the mining infrastructure.

📉 Uncertain Future for the Nasdaq-listed Miner

It remains unclear how these lawsuits will impact Mawson's long-term prospects. But what is clear is this: a company once celebrated for growth and innovation is now facing serious reputational damage and legal uncertainty. With fraud allegations against its ex-CEO and a brewing dispute with key mining partners, investors and the crypto community are watching closely to see how the story unfolds.


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