The board of directors of the Mawson Infrastructure Group moved quickly this summer, cutting links with leaders amid serious claims. On May 30, the company notified CEO Rahul Mewawalla of the “cause” under the agreement.
A few days later he was placed on administrative leave. His board seat was then taken on July 8th, and a lawsuit was filed in Chance Court in Delaware.
The lawsuit accuses him of fraud and violations of duties while at the helm of a Bitcoin Miner registered with the Nasdaq.
Sudden fallout from major rewards
Reports say that months before his expulsion, Mewawalla received a $2.5 million cash bonus and a $1.2 million restricted stock unit.
His basic salary has also been increased to $1.2 million. At the time, Mawson praised his leadership, earnings growth of 36%, profits of 35% increased by 35%, and cost reductions for SG and A during his tenure.
Now these same achievements stand alongside allegations that he misused his role and harmed shareholders.
⚖⚖️ #bitcoin Miner Mawson fires CEO and file fraud lawsuits – what’s going on?
Mawson’s Leadership Fallout adds concerns about governance standards #crypto Mining, legal accountability remains a critical line of obstacles.$ BTC pic.twitter.com/nkmq1zlw5r
-cryptopus (@imcryptopus) July 22, 2025
Board Named Provisional CEO
Kaliste Saloom, the company’s general counsel, was tapped as interim CEO of the Bitcoin Mining Company after Mewawalla was on leave.
Saloom faces the challenge of piloting the company through what could become a long legal battle. Based on the report, the Board is seeking to recover any damages caused by Mewawalla’s actions.
At the same time, he pushed back. In a letter on July 17th, he denied the misconduct “respectfully and vigorously” and pointed to the board’s praise for his previous outcomes.
Continuous Miner Disputes Add Pressure
This fight occurs because Mauson is already caught up in another suit. Stone Ridge, who owns Nydig, accused Mawson of miscontrolling more than 20,000 ASIC miners worth around $30 million.
The two sides had a colocation agreement that was scheduled to end between December 2023 and March 2025, but there was a surge in differences in opinion over the fees. Mawson sent invoices totaling $1.9 million for space and power.
Stoneridge said there will be a contract to reduce energy use in the last month and will challenge those bills. Mawson then changed the miner’s payment address, banned access to Stoneridge staff, citing a contractual clause that the other party said would not apply.
Investors look closely at both cases. If the board can prove its claim in court, Mausson could return to the millions of chunks and send a message about accountability.
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