The suit accuses him of fraud and breach of duty while at the helm of the Nasdaq‑listed Bitcoin miner.
According to reports, just months before his ouster, Mewawalla received $2.5 million in cash bonuses and 1.2 million restricted stock units.
His base pay was also raised to $1.2 million. Back then, Mawson praised his leadership, citing 36% revenue growth, a 35% jump in gross profit and cuts in SG&A expenses during his tenure.
Now, those same achievements stand alongside allegations that he misused his role and harmed shareholders.
Kaliste Saloom, the company’s general counsel, was tapped as interim CEO for the Bitcoin mining company after Mewawalla was placed on leave.
Saloom faces the task of steering the firm through what could be a long legal battle. Based on reports, the board is seeking to recover damages that it says stem from Mewawalla’s actions.
At the same time, he has pushed back. In a July 17 letter, he “respectfully and vigorously” denied any wrongdoing and pointed to the board’s earlier public praise of his results.
This fight comes as Mawson is already tangled in another suit. Stone Ridge, which owns NYDIG, accused Mawson of wrongfully taking control of over 20,000 ASIC miners valued at about $30 million.
The two sides had a colocation deal starting December 2023, set to end by March 2025. But disagreements over fees turned ugly. Mawson sent invoices totaling $1.9 million for space and power.
Stone Ridge said there was a deal to cut energy use in the final month and disputed those bills. Mawson then changed the payout address for the miners and barred access to Stone Ridge staff, citing a contract clause that the other side says doesn’t apply.
Investors will be watching both cases closely. If the board can prove its claims in court, Mawson might claw back millions and send a message about accountability.
Featured image from Unsplash, chart from TradingView
