Marathon Digital fined $138M for non-circumvention agreement breach

Ezra Reguerra40 minutes agoMarathon Digital fined $138M for non-circumvention agreement breachMarathon Digital has been fined $138M for breaching a non-disclosure, non-circumvention agreement with former executive Michael Ho.396 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksMarathon Digital, the largest Bitcoin mining company by market capitalization, has reportedly been fined $138 million after being found guilty of breaching a non-disclosure or non-circumvention agreement. 

Michael Ho, the former co-founder of US Bitcoin Corp and the chief strategy officer of mining company Hut 8, won a unanimous jury verdict in his breach of contract lawsuit against Marathon Digital Holdings.

A non-circumvention agreement is a legally enforceable agreement that protects firms or individuals from being bypassed by other parties participating in a transaction.Marathon breaches agreement with Michael Ho

In a press release sent to Cointelegraph, Affeld England & Johnson LLP, who represented Ho, explained that in 2020, the executive developed a growth strategy for Marathon, including developing a large-scale Bitcoin mining facility in North America.

According to the law firm, Marathon breached their agreement with Ho by executing his strategy without compensating him for the proprietary information he provided, essentially breaking their non-circumvention agreement.

David Affeld, one of the partners at Affeld England & Johnson LLP who tried the case, said that the verdict emphasizes the importance of honoring commitments and choosing the right business partners. Affeld added:“It sends a powerful message that ethical business practices are not optional, they are essential.”

Affeld also said the unanimous jury verdict for $138 million vindicates Ho’s efforts and expertise. “It reinforces the importance of honoring contractual obligations and respecting professional relationships,” Affeld added.

Affeld collaborated with Gregg Zucker at Foundation Law Group LLP, who had filed the original action.

Cointelegraph approached Marathon Digital for comments but did not get an immediate response.

Related:Paraguay miners urge state electricity board to reconsider upcoming price hikeMarathon Digital remains the world’s largest mining firm

Despite the lawsuit, Marathon Digital Holdings is still the world’s largest Bitcoin mining firm based on market capitalization. Valued at $6.77 billion, the company surpasses the second-largest mining firm, CleanSpark, by 48%. According to CompaniesMarketCap data, CleanSpark has a market capitalization of $4.13 billion.World’s largest Bitcoin mining company. Source: CompaniesMarketCap

In June, Marathon Digital doubled its operational hashrate year-over-year to 26.3 exahashes (EH/s). The increase was attributed to improvements in its Ellendate facility, which became fully operational in July. According to Fred Thiel, CEO and chairman of Marathon Digital, their mining pool captured 158 blocks in the month, showing a 10% increase compared to the previous year.

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