Monday, July 15, 2024
HomeLaw & PoliticsCore Scientific Settles with Celsius Network for $14 Million

Core Scientific Settles with Celsius Network for $14 Million

Crypto mining company Core Scientific has reached an agreement with lending firm Celsius Network to put an end to their lengthy legal dispute. In an announcement on September 15th, Core Scientific revealed that it would be selling a Bitcoin mining data center to Celsius in exchange for $14 million in cash, effectively resolving all ongoing litigation. This data center, based in Texas, had an estimated value of approximately $45 million, and the agreement is still subject to court approval.

The feud between the two companies originally ignited in October 2022 when Core Scientific accused Celsius of not meeting its financial obligations, while Celsius countered by asserting that Core Scientific had failed to deploy mining rigs as stipulated in their contract. In response to their financial troubles, both companies separately filed for Chapter 11 bankruptcy protection in the United States – Core Scientific in Texas in December 2022 and Celsius in New York in July 2022.

The Texas data center, likely to be transferred to Celsius’s mining arm upon approval, had been nonoperational but possessed the capacity to supply 215 megawatts to Bitcoin mining rigs. Notably, Chris Ferrero, CEO of Celsius, mentioned that crypto mining firm US Bitcoin played a pivotal role in structuring and executing this transaction, and it was also involved in a successful bid for Celsius’s assets during bankruptcy proceedings.

It is important to note that this legal resolution is distinct from the criminal charges that have been brought against former Celsius CEO Alex Mashinsky and former Chief Revenue Officer Roni Cohen-Pavon. Mashinsky was arrested in July on charges related to fraud and market manipulation and has pleaded not guilty. Meanwhile, Cohen-Pavon recently pleaded guilty to four charges on September 13th and is set to be sentenced in December.

The agreement between Core Scientific and Celsius Network marks the end of a contentious legal battle between two prominent players in the crypto industry and paves the way for both companies to move forward in their respective operations.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

one × three =

- Advertisment -

Most Popular