Nasdaq-listed Bitcoin miner Mawson fires CEO over fraud allegations

Nasdaq-listed Bitcoin miner Mawson Infrastructure Group Inc. has reportedly dismissed its CEO, Rahul Mewawalla, amid allegations of fraud and breach of fiduciary duty. 

The lawsuit was initiated in the Delaware Court of Chancery, and the allegations range from suspected fraudulent activities to misconduct.

Mewawalla denies wrongdoing, points to earlier achievements 

The dismissal of Rahul Mewawalla comes as a surprise to many as it is happening months after Mawson awarded him $2.5 million in cash bonuses, 1.2 million restricted stock units, and a base salary increase to $1.2 million, a reward for what it called “high-performing” executive performance. 

On May 30, the company notified Mewawalla that his termination for “Cause,” as defined in his employment agreement, was under consideration and days down the line, the board put him on administrative leave, tapping General Counsel Kaliste Saloom to be interim CEO. 

By July 8, the decision had been made; his board seat was revoked and the lawsuit, which accused him of fraud and fiduciary breaches, was filed in Delaware’s Court of Chancery seeking to recover damages.

Mewawalla is yet to comment on or respond to Mawson’s accusations. However, in a July 17 letter to the board, he “respectfully and vigorously” disagreed with the company’s version of events while highlighting the board’s own public praise of his leadership earlier this year. 

He mentioned how in recent public filings, the company highlighted “numerous strategic, operational, and financial milestones achieved” while he was CEO, including 36% revenue growth, a 35% jump in gross profit, and reductions in SG&A expenses.

Mawson made headlines for being sued months ago

The dispute between Mawson and its CEO is happening months after the company got sued by NYDIG’s parent company, Stone Ridge and its mining subsidiary, Consensus Colocation, accusing it of allegedly illegally obtaining over 20,000 ASIC miners valued at $30 million and using them to mine Bitcoin for itself since February 28, 2025.

Consensus and Mawson had a colocation agreement established in December 2023, with plans to terminate by March 2025. However, there were disputes over colocation fees and access to miners.

Mawson issued invoices totaling $1,978,000 for colocation fees and electricity, which Stone Ridge disputed, claiming there was a mutual agreement that there would be less energy used during the final month of the contract.

Mawson went as far as changing the payout address for the miners and revoking access for Consensus personnel, an action it justified by citing a provision in their agreement that Stone Ridge argues does not apply. 

The company filed the lawsuit to seek an injunction that would restore the hosting agreement and has demanded that Mawson reinstate access to the miners as part of the removal process. There have been no updates since then but the case has been filed with more updates expected in the future.