Bitcoin miner Marathon Digital has been ordered to pay $138 million for violating a non-disclosure agreement with former executive Michael Ho.
Bitcoin miner Marathon Digital Holdings has been ordered to pay a staggering $138 million fine for infringing on a non-disclosure, non-circumvention agreement with Michael Ho, a former executive, as reported by Cointelegraph. The verdict, which was unanimous, came as a result of a lawsuit initiated by Ho, who is also the co-founder of US Bitcoin Corp and currently serves as the chief strategy officer of another mining company, Hut 8.
According to the information provided in a press release by the law firm Affeld England & Johnson, which represented Ho, the dispute hinged on an agreement from 2020. Ho had devised a significant growth plan for Marathon, including the development of a large-scale Bitcoin mining operation in North America. However, Marathon Digital allegedly implemented Ho's strategic plan without duly compensating him for his proprietary contributions, thereby breaching the non-circumvention agreement between them.
David Affeld, a partner at Affeld England & Johnson, emphasized the jury's decision as a testament to the importance of ethical business practices and the honoring of agreements. "It sends a powerful message that ethical business practices are not optional, they are essential," stated Affeld. He further highlighted that the jury's unanimous decision to award $138 million in damages to Ho underscores the value of Ho's expertise and the significance of adhering to contractual commitments.
The original lawsuit was filed by Gregg Zucker of the Foundation Law Group, with whom Affeld collaborated. At the time of reporting, Cointelegraph had reached out to Marathon Digital for a statement regarding the verdict, but no immediate response was received.
Despite the recent legal setback, Marathon Digital Holdings retains its position as the world's largest Bitcoin mining firm by market capitalization. With a valuation of $6.77 billion, Marathon Digital surpasses its closest competitor, CleanSpark, by a considerable margin of 48%. CleanSpark currently has a market capitalization of $4.13 billion.
