Celsius and Core Scientific Settle Legal Dispute for $45 Million
Crypto mining companies Celsius and Core Scientific Cores have reached a tentative settlement in their long-running legal dispute. Under the agreement, Celsius will pay $14 million in cash, while the remaining amount will be settled through adjusted claims. However, the settlement is still subject to approval from judges in Texas and New York, where both companies filed for bankruptcy.
Background of the Dispute
The disagreement between Celsius and Core Scientific began in October 2022 when Core Scientific accused Celsius of not paying its bills. In response, Celsius claimed that Core Scientific had not utilized mining rigs as specified in their contract. Both companies separately filed for Chapter 11 bankruptcy protection, with Core Scientific filing in Texas in December 2022 and Celsius filing in New York in July 2022.
Statements from the Parties
Adam Sullivan, CEO of Core Scientific, expressed his satisfaction with the resolution of the litigation, stating that they remain committed to enhancing operational excellence and emerging stronger from the restructuring process. He also mentioned plans to expand their data centers in Texas to maintain their position as one of the largest Bitcoin producers in North America.
Separate from Criminal Charges
It’s important to note that this legal dispute is separate from the criminal charges faced by former Celsius CEO Alex Mashinsky and former Chief Revenue Officer Roni Cohen-Pavon. Mashinsky is facing charges related to fraud and market manipulation, while Cohen-Pavon has pleaded guilty to four charges and is awaiting sentencing.
Hot Take: Settlement Brings Relief but Uncertainty Remains
The $45 million settlement between Celsius and Core Scientific brings some relief to both parties involved. However, it is crucial to remember that this settlement still requires approval from the bankruptcy courts. While the resolution of the legal dispute is a positive step, the ongoing criminal charges against former Celsius executives add an element of uncertainty to the situation. The crypto community will be closely watching the developments in this case as it unfolds.
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