The board of administrators of the Mawson Infrastructure Group moved shortly this summer time, slicing hyperlinks with leaders amid critical claims. On Might 30, the corporate notified CEO Rahul Mewawalla of the “trigger” below the settlement.
A number of days later he was positioned on administrative depart. His board seat was then taken on July eighth, and a lawsuit was filed in Probability Court docket in Delaware.
The lawsuit accuses him of fraud and violations of duties whereas on the helm of a Bitcoin Miner registered with the Nasdaq.
Sudden fallout from main rewards
Stories say that months earlier than his expulsion, Mewawalla acquired a $2.5 million money bonus and a $1.2 million restricted inventory unit.
His fundamental wage has additionally been elevated to $1.2 million. On the time, Mawson praised his management, earnings progress of 36%, earnings of 35% elevated by 35%, and price reductions for SG and A throughout his tenure.
Now these identical achievements stand alongside allegations that he misused his function and harmed shareholders.
⚖⚖️ #bitcoin Miner Mawson fires CEO and file fraud lawsuits – what is going on on?
Mawson’s Management Fallout provides issues about governance requirements #crypto Mining, authorized accountability stays a crucial line of obstacles.$ BTC pic.twitter.com/nkmq1zlw5r
-cryptopus (@imcryptopus) July 22, 2025
Board Named Provisional CEO
Kaliste Saloom, the corporate’s common counsel, was tapped as interim CEO of the Bitcoin Mining Firm after Mewawalla was on depart.
Saloom faces the problem of piloting the corporate by means of what may change into a protracted authorized battle. Primarily based on the report, the Board is searching for to get better any damages brought on by Mewawalla’s actions.
On the identical time, he pushed again. In a letter on July seventeenth, he denied the misconduct “respectfully and vigorously” and pointed to the board’s reward for his earlier outcomes.
Steady Miner Disputes Add Strain
This combat happens as a result of Mauson is already caught up in one other swimsuit. Stone Ridge, who owns Nydig, accused Mawson of miscontrolling greater than 20,000 ASIC miners value round $30 million.
The 2 sides had a colocation settlement that was scheduled to finish between December 2023 and March 2025, however there was a surge in variations in opinion over the charges. Mawson despatched invoices totaling $1.9 million for house and energy.
Stoneridge stated there will probably be a contract to cut back power use within the final month and can problem these payments. Mawson then modified the miner’s fee deal with, banning entry to Stoneridge employees, citing a contractual clause that the opposite get together stated wouldn’t apply.
Traders look intently at each circumstances. If the board can show its declare in court docket, Mausson may return to the tens of millions of chunks and ship a message about accountability.
Unsplash featured photographs, TradingView charts
