Leadership Turmoil at Mawson Infrastructure Amid Legal Battles
Nasdaq-listed Bitcoin mining company Mawson Infrastructure Group Inc. has removed its Chief Executive Officer, Rahul Mewawalla, following serious allegations of fraud and breach of fiduciary duty. The company filed a lawsuit in the Delaware Court of Chancery, accusing Mewawalla of misconduct and seeking damages.
The decision to terminate Mewawalla has raised eyebrows, especially considering the generous compensation package he received earlier this year. Mawson had awarded him $2.5 million in cash bonuses, 1.2 million restricted stock units, and increased his base salary to $1.2 million, citing his strong performance as CEO.
On May 30, Mawson informed Mewawalla that it was considering termination “for Cause,” as outlined in his employment agreement. Shortly afterward, the board placed him on administrative leave and appointed General Counsel Kaliste Saloom as interim CEO. By July 8, the board had officially removed Mewawalla from his position and revoked his seat, filing the lawsuit shortly thereafter.
Mewawalla has not publicly responded to the lawsuit, but in a letter dated July 17 addressed to the board, he strongly disagreed with the company’s claims. He pointed to Mawson’s own public statements earlier in the year that praised his leadership and highlighted key achievements during his tenure. These included a 36 percent increase in revenue, a 35 percent rise in gross profit, and reductions in selling, general, and administrative expenses.
This internal conflict comes on the heels of another legal dispute involving Mawson. Earlier this year, the company was sued by Stone Ridge Holdings Group and its mining subsidiary, Consensus Colocation. The lawsuit alleges that Mawson unlawfully took possession of over 20,000 ASIC miners valued at $30 million and used them to mine Bitcoin for its own benefit starting February 28, 2025.
The two companies had entered into a colocation agreement in December 2023, with plans to end the arrangement by March 2025. Disagreements arose over fees and access to the mining equipment. Mawson issued invoices totaling nearly $2 million, which Stone Ridge contested, arguing that there had been a prior understanding to reduce energy usage during the final month of the contract.
Mawson also changed the payout address for the miners and restricted access for Consensus personnel, citing contractual provisions that Stone Ridge claims were misapplied. Stone Ridge is seeking an injunction to restore the hosting agreement and regain access to the equipment. The case remains active, with further developments anticipated.
