In the fast-moving world of crypto mining, fortunes can rise and fall in the blink of an eye.
That’s exactly what’s happened at Mawson Infrastructure Group, a major Bitcoin mining company, where once-celebrated CEO Rahul Mewawalla is now facing serious fraud allegations.
Just a few months ago, the company was praising his leadership.
Now? They’re taking him to court.
The Sudden Shake-Up at Mawson
It all began on May 30, when Mawson’s board of directors officially notified Mewawalla that he was being terminated “for Cause”—a big legal term that essentially means they believe he seriously violated his contract.
Soon after, he was placed on administrative leave.
And by July 8, his board seat was gone too.
That same day, the company filed a lawsuit against him in Delaware’s Court of Chancery.
The charges? Fraud and breach of fiduciary duty while acting as CEO of the Nasdaq-listed Bitcoin mining firm.
Bonuses, Raises—and Then Trouble
What makes the story even more jaw-dropping is how quickly things turned.
Not long before his exit, Mewawalla received a major payout—$2.5 million in cash bonuses and 1.2 million restricted stock units.
His base salary had also been increased to $1.2 million.
Mawson had previously applauded his results, pointing to a 36% jump in revenue, a 35% increase in gross profit, and reduced expenses during his leadership.
But now, those once-celebrated numbers are under a shadow.
The board claims he misused his position and damaged the company and its shareholders.
Interim CEO Steps In to Steady the Ship
To keep things moving while the legal process plays out, Mawson named Kaliste Saloom, its general counsel, as interim CEO. Saloom is now tasked with leading the company through what could be a drawn-out and messy legal fight.
In the meantime, Mewawalla has fired back.
In a July 17 letter, he strongly denied any wrongdoing, pointing out the board’s prior public praise and saying he would defend himself “respectfully and vigorously.”
Another Legal Storm Brewing Over Mining Equipment
As if one court case wasn’t enough, Mawson is also locked in a separate dispute—this time with Stone Ridge, the parent of NYDIG.
The issue? A bitter disagreement over ownership and control of more than 20,000 ASIC Bitcoin miners, worth about $30 million.
The companies had a colocation agreement starting in December 2023, with services running through March 2025.
But things turned sour over energy fees.
Mawson invoiced Stone Ridge for $1.9 million. Stone Ridge argued that a last-month energy reduction deal made those charges invalid.
It escalated quickly. Mawson changed the Bitcoin wallet payout address and denied Stone Ridge staff access to the miners, citing a clause that Stone Ridge says was never supposed to apply here.
Investors Are Watching Closely
All eyes are now on how both legal battles unfold.
If the board’s fraud claims hold up in court, Mawson could claw back a significant amount of money—and send a strong message about corporate accountability in an industry where transparency is often questioned.
With Bitcoin currently trading above $119,000, the stakes are as high as ever—not just for Mawson, but for investor trust across the crypto mining sector.
