Crypto mining firm Core Scientific has reached an agreement with lending company Celsius Network to resolve their ongoing legal battle. According to a statement released on September 15, Core Scientific has agreed to sell a Bitcoin mining data center to Celsius for $14 million in cash, effectively settling “all existing litigation”. The data center, located in Texas, has an estimated value of $45 million and the deal is subject to court approval.
The conflict between Core Scientific and Celsius began in October 2022 when Core Scientific accused Celsius of failing to pay its bills. In response, Celsius claimed that Core Scientific had not been deploying rigs as required under their contract. Both companies filed for Chapter 11 bankruptcy protection in the United States, with Core Scientific filing in Texas in December 2022 and Celsius filing in New York in July 2022.
The Texas data center, which is expected to be transferred to Celsius’ mining arm pending approval, was reportedly non-operational but capable of supplying 215 megawatts to Bitcoin rigs. Celsius CEO Chris Ferrero acknowledged the role of crypto mining firm US Bitcoin in structuring and executing the transaction, as well as their successful bid for Celsius’ assets in bankruptcy proceedings.
It is important to note that the legal dispute between Core Scientific and Celsius is separate from the criminal charges faced by former Celsius CEO Alex Mashinsky and former chief revenue officer Roni Cohen-Pavon. Mashinsky was arrested in July and has pleaded not guilty to charges related to fraud and market manipulation. Cohen-Pavon, on the other hand, pleaded guilty to four charges on September 13 and is scheduled to be sentenced in December.
This settlement marks a significant development in the ongoing legal battle between Core Scientific and Celsius. The agreement to sell the Bitcoin mining data center demonstrates a willingness to resolve the dispute and move forward. Court approval will be required for the deal to be finalized, but if successful, it could bring an end to months of litigation between the two companies.
Sources:
– [Core Scientific and Celsius Mining Enter into Purchase Agreement for Core Scientific’s Texas Data Center Site, Agree to Settle All Existing Litigation](https://www.businesswire.com/news/home/20230915933172/en/Core-Scientific-Inc.-and-Celsius-Mining-LLC-Enter-into-Purchase-Agreement-for-Core-Scientific%E2%80%99s-Texas-Data-Center-Site-Agree-to-Settle-All-Existing-Litigation)
– [Celsius Network Defaults on Payments to Core Scientific, Causing Financial Unrest](https://cointelegraph.com/news/celsius-network-defaults-on-payments-to-core-scientific-causing-financial-unrest)
– [Fahrenheit Wins Bid to Acquire Assets of Crypto Lender Celsius](https://cointelegraph.com/news/fahrenheit-wins-bid-to-acquire-assets-of-crypto-lender-celsius)
– [‘Unjustly Enriched’ — Core Scientific Knocks Back $4.7M Claim from Celsius](https://cointelegraph.com/news/unjustly-enriched-core-scientific-knocks-back-4-7m-claim-from-celsius)
– [Former Celsius Exec Pleads Guilty to Criminal Charges](https://cointelegraph.com/news/former-celsius-exec-pleads-guilty-criminal-charges)
– [Get your money back: The weird world of crypto litigation](https://cointelegraph.com/magazine/money-back-crypto-litigation)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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