Cryptocurrency News

BeijinCourt refuses to grant $30M damages to Bitmain

A court in China during the course of hearing an appeal moved by Bitmain, who is famously known as the “Bitcoin mining giant”, refused to grant damages to the tune of US$30 Million in the form of damages claimed against the co-founders of Poolin. The co-founders welcomed the ruling of the Beijing No.1 Intermediate People’s Court passed vide order dated August, 31st 2020 and appreciated that the Court hearing the appeal has come to the just decision which is in accordance with law. The judgement was announced in an open Court on 8th September 2020 in which a long-drawn lawsuit has come to its end. While denying the damages, the Court however has accepted the arguments raised in the Bitmain’s appeal regarding increasing the amount of fines imposed on the Poolin co-founders for their breach of the terms contained in the non-compete agreements executed with Bitmain’s mining pool, i.e. their former employer. The Court then directed the co-founders to pay fines to the tune of US$200,000, $178,000 and US$154,000 each respectively.

However, the Court categorically refused to grant US$ 30 million claimed by Bitmain, which it had thought will compensate the company in terms of the losses relating to loss of reputation and loss of business it had suffered due to the breach of non-compete agreements by the co-founders.

Both sides presented their arguments through their counsels. The counsel of the Bitmain argued before the court that since it is obvious that the three co-founders have deliberately violated the terms and conditions of the non-compete agreements therefore the amount of fines should be increased. The counsel of Bitmain further contended before the Court that since the time when the co-founders breached the non-compete agreements till to this date of hearing, Bitmain has suffered irreparable losses and damages to the tune of US$ 30 Million. The Court however, did not agree with the argument of the counsel of Bitmain and in its order announced on 8th September, 2020 denied the argument while concluding that Bitmain had failed to provide sufficient evidence in support of its claim and therefore refused to grant damages of US$30 Million.

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