CEO of Bitcoin miner Mawson, Rahul Mewawalla, was fired due to allegations of fraud and breach of fiduciary duty.
The lawsuit was filed in Delaware Court with many serious allegations, while Mewawalla denied wrongdoing and highlighted his achievements while in office.
MAIN CONTENT
Mawson's CEO was fired due to allegations of fraud and breach of governance agreements.
Rahul Mewawalla denied the allegations, emphasizing the 36% revenue growth and 35% gross profit during his leadership.
Mawson is facing another lawsuit related to contract disputes and control over cryptocurrency mining equipment.
Why was Mawson's CEO, Rahul Mewawalla, fired amid fraud allegations?
The firing of Mawson's CEO was carried out after shareholders accused him of serious fraudulent behavior and breach of fiduciary duty.
The lawsuit was filed in Delaware Court in July 2025, while Mewawalla's board seat was also revoked.
Mawson's management decided to terminate the contract under 'Cause' based on the clause in the employment agreement. Previously, he had received cash bonuses, restricted stock, and salary increases for outstanding performance.
Mewawalla's firing occurred after the board reviewed several serious issues, aiming to protect shareholder interests and the company's reputation.
Kaliste Saloom, Chairman of the Mawson Board, 2025
How did Mewawalla respond to the allegations?
Raul Mewawalla strongly denied any wrongdoing in a letter sent to the board of directors on July 17, 2025.
He emphasized that during his tenure as CEO, Mawson achieved significant milestones: a 36% revenue increase, a 35% increase in gross profit, and a reduction in selling, general and administrative expenses (SG&A).
The management previously praised Mewawalla's 'high-level' performance with rewards totaling nearly $6 million based on total salary and benefits.
Mawson internal memo, May 2025
Another notable lawsuit of Mawson involves a dispute over mining equipment.
On 2025, Mawson faced a lawsuit from Stone Ridge – the parent company of NYDIG and the subsidiary Consensus Colocation, alleging the illegal appropriation of over 20,000 ASIC machines valued at approximately $30 million for unauthorized Bitcoin mining.
The colocation contract started from December 2023 to March 2025 but faced disputes over service fees and access to equipment.
Mawson previously sent an invoice of nearly $2 million for placement fees and electricity, which was not agreed upon by the partner due to the consumption reduction agreement in the last month.
Additionally, Mawson changed the payment address and revoked access rights for Consensus employees, leading to increased disputes and a lawsuit being filed to restore the colocation contract.
The significance and impact of legal disputes on Mawson
The lawsuit and CEO firing put significant pressure on Mawson's reputation and operations in the Bitcoin mining industry. From an expert's perspective, this is a clear example of corporate governance risks in the cryptocurrency field.
Financial expert Sarah Johnson emphasized: 'This serves as a warning to investors about the importance of transparency and risk governance in the cryptocurrency mining industry' (Sarah Johnson, Cryptocurrency Finance Expert, 2025).
Frequently Asked Questions
What exactly is the CEO of Mawson accused of?
He was accused of financial fraud and breach of fiduciary duty, which could affect shareholder interests and company transparency.
How did Mawson handle the CEO's firing?
The company enforced the 'Cause' clause to terminate the contract while quickly appointing an interim CEO to ensure operations.
What is Stone Ridge's role in the Mawson lawsuit?
Stone Ridge sued Mawson for illegally appropriating over 20,000 ASIC mining machines that both parties had previously agreed to colocate.
What could Mawson lose if such a dispute occurs?
The risk of loss of reputation, decline in stock value, and impact on important partnership contracts in the cryptocurrency mining industry.
What achievements did Rahul Mewawalla have as CEO?
He contributed to a 36% revenue growth, a 35% increase in gross profit, and a reduction in operating costs during his tenure at Mawson.
Source: https://tintucbitcoin.com/mawson-sa-thai-ceo-vi-gian-lan/
Thank you for reading this article!
Please Like, Comment and Follow TinTucBitcoin to stay updated on the latest news about the cryptocurrency market and not miss any important information!
