Marathon Digital, the largest Bitcoin mining company by market value, was found guilty of violating a confidentiality and non-infringement agreement with its former executive Michael Ho and was fined $138 million.
Marathon Digital Fined $138 Million for Violating Non-Infringement Agreement
Michael Ho, former co-founder of US Bitcoin Corp and 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-breach agreement is a legally enforceable contract that protects parties from being bypassed in a transaction.
Ho developed a growth strategy for Marathon in 2020 that included building a large-scale Bitcoin mining facility in North America, according to a press release from Affeld England & Johnson LLP, which represents Ho.
The law firm stated that Marathon breached their agreement by implementing Ho's strategy without compensating him for the proprietary information he provided, thus violating the non-infringement agreement.
David Affeld, a partner at Affeld England & Johnson LLP, emphasized the importance of the decision and said, “This decision sends a strong message that ethical business practices are not optional, but necessary.”
Affeld also stated that the unanimous jury verdict vindicated Ho's efforts and expertise and reinforced the importance of fulfilling contractual obligations and respecting professional relationships.
*This is not investment advice.
