The post Celsius and Core Scientific Reach $45 Million Deal to Settle Mining Dispute appeared first on Coinpedia Fintech News
Celsius and Core Scientific Cores, two crypto mining companies, have tentatively agreed to settle their long-running legal dispute for $45 million. Celsus will pay $14 million in cash, with the remainder settled through adjusted claims. However, this settlement still needs approval from judges in Texas and New York, where both companies filed for bankruptcy.
The filing read, “After months of negotiations, Celsius and [Core Scientific] have now consensually resolved their long-running disputes and agreed to a global settlement that will fully resolve this litigation. The Settlement also resolves the protracted and expensive litigation with Core and cuts off the significant costs that would have been incurred if the Parties were to fully litigate their claims against each other in two bankruptcy courts.”
The dispute began in October 2022 when Core Scientific claimed Celsus hadn’t paid its bills, while Celsus argued that Core Scientific hadn’t used mining rigs as agreed in their contract. Both firms separately filed for Chapter 11 bankruptcy protection in the US, Core Scientific in Texas in December 2022, and Celsus in New York in July 2022.
Adam Sullivan, CEO of Core Scientific said, “We are pleased to resolve all existing litigation related to Celsius Mining. With unwavering focus, we continue to deliver on our commitment to enhance the operational excellence of the organization and emerge from our restructuring process later this year even stronger. Executing our three-year roadmap to drive growth, we plan to expand our two operational Texas data centers to provide sufficient capacity for us to remain one of the largest and most efficient Bitcoin producers at scale in North America.”
Importantly, this legal dispute is separate from the criminal charges against former Celsius CEO Alex Mashinsky and former Chief Revenue Officer Roni Cohen-Pavon. Mashinsky faces charges related to fraud and market manipulation, while Cohen-Pavon pleaded guilty to four charges in September and awaits sentencing in December.
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