Legal Battle Ahead: Former Bitfarms CEO Geoffrey Morphy Sues for $27 Million

Geoffrey Morphy, the former CEO of the prominent Bitcoin mining company Bitfarms, has initiated a lawsuit against the company, demanding $27 million in punitive damages. The lawsuit, filed on May 10, 2024, in the Superior Court of Ontario, revolves around claims of breach of contract and wrongful dismissal. This legal action comes in the wake of a contentious CEO transition announced in March, which initially stated Morphy would remain until a new executive was found, according to TheMinerMag.

Bitfarms terminated Morphy’s tenure abruptly on Monday, subsequent to his legal filing, marking a dramatic shift in company leadership. The details of Morphy’s contract breach allegations remain undisclosed as the court filings are not publicly accessible. However, the case, logged under number CV24007200830000 in Toronto, specifies the dispute amount as exactly $26,676,333.

In response to the lawsuit, Bitfarms has expressed confidence that the claims are baseless and has vowed to defend itself vigorously. Amidst these legal proceedings, the company has expedited its search for a new CEO by forming a special committee of independent directors. Meanwhile, Nicolas Bonta, co-founder and chairman of Bitfarms, has stepped in as interim president and CEO.

This lawsuit emerges just as Bitfarms was preparing to share its Q1 2024 financial results. Due to these recent developments, the company has rescheduled its earnings call to May 15, highlighting the turbulent times at the helm of one of the leading players in the Bitcoin mining sector.