Bitcoin

David

Foundation

Marathon 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.&nbsp;
Michael Ho, the 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. 
<h2 data-ct-non-breakable="true" id="marathon-breaches-agreement-with-michael-ho">Marathon breaches agreement with Michael Ho</h2>
In a press release sent to Cointelegraph, Affeld England &amp; Johnson, who represented Ho, explained that in 2020, the executive developed a growth strategy for Marathon, including developing a large-scale Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) 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 &amp; Johnson who tried the case, said that the verdict emphasizes the importance of honoring commitments and choosing the right business partners. Affeld added: 
<blockquote data-ct-non-breakable="true">
 “It sends a powerful message that ethical business practices are not optional, they are essential.” 
</blockquote>
Affeld also <a href="https://hedgefundalpha.com/138-million-jury-verdict-against-marathon-digital/" target="_blank" rel="noopener nofollow">said</a> 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,” he said.
Affeld collaborated with Gregg Zucker at Foundation Law Group, who had filed the original action.
Cointelegraph approached Marathon Digital for comments but did not get an immediate response. 
Related: <a href="https://cointelegraph.com/news/paraguay-crypto-miners-warn-electricity-price-hike">Paraguay miners urge state electricity board to reconsider upcoming price hike</a>
<h2 data-ct-non-breakable="true" id="marathon-digital-remains-the-world-s-largest-mining-firm">Marathon Digital remains the world’s largest mining firm</h2>
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%. <a href="https://companiesmarketcap.com/bitcoin-mining/largest-bitcoin-mining-companies-by-marketcap/" target="_blank" rel="noopener nofollow">According</a> to CompaniesMarketCap data, CleanSpark has a market capitalization of $4.13 billion. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/3dd8e0fe-19f5-4876-a9c1-5da8e956a503.jpg" alt="Marathon Digital fined $138M for non-circumvention agreement breach" title="">
 <figcaption style="text-align: center;">
 World’s largest Bitcoin mining company. Source: CompaniesMarketCap
 </figcaption>
</figure>
In June, Marathon Digital <a href="https://cointelegraph.com/news/marathon-digital-holds-bitcoin-june">doubled its operational hashrate</a> year-over-year to 26.3 exahashes per second. 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, a 10% increase from July 2023. 
Magazine: <a href="https://cointelegraph.com/magazine/philippines-xrp-theft-mining-rigs-tax-south-korea-asia-express/">Singapore ‘not ready’ for Bitcoin ETFs, sneaky crypto mining rig importer: Asia Express</a>

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

Table of Contents

Cointelegraph

Other articles published on Jul 23, 2024

Will Shiba Inu (SHIB) Overcome Its Current Downturn?

Bitcoin Depot BTC Treasury To Be Launched To Enhance Asset Growth Strategy

Spot Ethereum ETF Approval Signals New Shift in Cryptocurrency Regulation

Analysts believe Notcoin (NOT) and Mpeppe (MPEPE) Are Two Tokens That Will Pump Past $0.30

Will Trump Announce Bitcoin (BTC) as Reserve Currency for the USA at the Bitcoin Conference 2024?

Spot Ethereum ETFs Finally Approved for US Trading, Set to Launch on July 23

Join our free newsletter for daily crypto updates!