The second-largest Bitcoin mining pool Poolin now has to return $123,000 to its former owner Bitmain and pay $173,000 in fines.
The co-founders of Bitcoin mining pool Poolin have lost their legal battle against their former employer Bitmain, with the reported ruling result reading that the three should return all the paid compensation and pay fines totalling more than 1.2 million yuan ($170,000).
The case has been developing since August 2018 when cryptocurrency mining giant Bitmain first filed a lawsuit against its three former senior executives, who started a rival mining pool, for allegedly violating a non-compete agreement.
According to the ruling result published on January 6 by the People’s Court of Beijing Haidian District on the lawsuit, the former three senior executives violated the non-compete agreement and will pay their former employer a penalty for breach of the agreement.
The judgment reads that Pan Zhibiao, the legal representative of Poolin, Zhu Fa, a shareholder of Poolin, and Li Tianzhao, another shareholder, is ordered to carry out the non-compete agreement and the supplement agreement signed by both parties until August 9, 2019.
The three are also ordered to return all the compensation paid by their former employer Bitmain between September 2017 and January 2019, totalling 870,000 yuan ($123,000), as well as fines of 1,222,000 yuan ($173,000) within seven days after the judgment comes into effect.