Marathon Digital, a US-based cryptocurrency mining company, is being sued.
Marathon Digital Shareholders Filed a Lawsuit Against The Company's CEO and Executives
Marathon Digital, a US-based cryptocurrency mining company, is being sued after shareholders accused CEO Fred Thiel and other top employees of breaching fiduciary duties and wasting company resources.
10 Marathon officials are named in the case, which was filed in the US District Court for the District of Nevada. It makes five claims against the defendants, including unjust enrichment and violations of the US Securities Exchange Act.
Thiel and three other people are sought by the plaintiffs as prospective defendants for wrongdoing that resulted in a Securities and Exchange Commission lawsuit against the defendant corporation. The legal team defending the shareholders did not ask the defendants for a specific amount.
By proposing at least four shareholders for the board and doing away with the former practice of electing directors, the shareholders hope to improve the company's governance.
The SEC served Marathon with a subpoena in May "relating to, among other things, transactions with related parties" that took place as it was constructing its facility in Montana.