Marathon Digital Fined $138 Million for Breaching Non-Disclosure Agreement
Major Bitcoin mining company Marathon Digital Holdings has been hit with a substantial fine of $138 million.
The penalty stems from a breach of a non-disclosure or non-circumvention agreement, according to a recent press release.
The lawsuit was brought by Michael Ho, a former co-founder of US Bitcoin Corp and currently the chief strategy officer at Hut 8, another mining firm.
Ho secured a unanimous jury verdict in his favor, underscoring the importance of adhering to contractual agreements in the business world.
A non-circumvention agreement is designed to protect parties in a transaction from being bypassed, ensuring that all involved are duly compensated for their contributions and proprietary information.
Affeld England & Johnson LLP, the law firm representing Ho, said that he had developed a growth strategy for Marathon Digital in 2020, which included plans for establishing a large-scale Bitcoin mining facility in North America.
However, Marathon allegedly executed Ho’s strategy without providing him with the agreed-upon compensation, thus violating the non-circumvention agreement.
The largest Bitcoin miner Marathon Digital (NASDAQ: MARA) has been slapped $139 million in fine against the charges of breach of a non-disclosure agreement. This happened as the Bitcoin miner lost a jury verdict against Michael Ho, the former co-founder of US Bitcoin Corp and … pic.twitter.com/Y1bKD5Adwm
— Parrot Coin (@parrot_coins) July 23, 2024
“The decision underscores the necessity of ethical business practices and honoring commitments,” David Affeld, a partner at Affeld England & Johnson LLP, reportedly said.
“It sends a powerful message that ethical business practices are not optional; they are essential.”
The case was jointly handled by
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