Federal Court Rules Against Marathon Digital, Fines $138 Million
A federal court in Los Angeles has ruled against Marathon Digital, fining them $138 million. The jury verdict was in favor of Michael Ho, founder of US Bitcoin Corp and investment director of Hut 8, who claimed that Marathon Digital used his ideas to develop their strategy without compensation.
In 2020, Marathon Digital, the largest mining company by market capitalization valued at $6.99 billion, announced plans to launch a major bitcoin mining center in the United States. This project incorporated ideas and confidential information from Michael Ho, yet he was not paid the rightful compensation for the data provided.
Marathon Digital surpasses its competitors, such as CleanSpark with a market capitalization of $4.1 billion and Riot Blockchain with $3.5 billion. The company is also actively involved outside the U.S., including a joint venture in Abu Dhabi and participation in a project using heat from bitcoin mining to heat homes in Finland.
Previously, a court in Texas acquitted David Fisher, head of the Marathon Digital mining facility in Granbury, of 12 charges related to noise level violations.
Against this backdrop, the $138 million fine underscores the importance of respecting intellectual property rights and could have a significant impact on the operations and financial condition of Marathon Digital.
