Former CEO Sues Bitcoin Miner Bitfarms Demanding $27M

Bitfarms chairman and co-founder Nicolas Bonta has been appointed interim president and CEO

Geoffrey Morphy, the former president and CEO of Bitfarms, is suing his former employer demanding $27 million in punitive damages over allegations of breach of contract and wrongful dismissal.

Bitfarms first announced a CEO transition in March that Morphy would depart the firm but would continue his role as the president and CEO until the company completes an executive search.

However, Bitfarms said on Monday that it had terminated Morphy’s role after the former executive filed a legal complaint on May 10 in the Superior Court of Ontario, accusing the company of breach of contract and wrongful dismissal.

The details of Morphy’s allegations are unclear as the actual court filing is not immediately available from the Canadian court. However, the case entry shows it was filed in Toronto with case number CV24007200830000, and the exact amount of the dispute is $26,676,333.

Bitfarms said it believes the claims are without merit and intends to defend itself vigorously. It has formed a CEO search committee of independent directors to accelerate the executive search process.

In the meantime, Bitfarms’ chairman and co-founder, Nicolas Bonta, has been appointed interim president and CEO to lead the company’s management.

Morphy joined Bitfarms in 2020 as president and COO and was promoted to CEO in 2022, taking over the chief role from Bitfarms’ other co-founder, Emiliano Grodzki.

Bitfarms previously scheduled an earnings call for its Q1 2024 financial results on Monday. Amid the abrupt management change, the earnings call was rescheduled to May 15.