Celsius, core scientific resolve acrimonious mining dispute with $45m deal
Crypto mining providers Celsius and Core Scientific (CORZ) have reached a tentative $45 million deal to resolve a long-standing legal dispute, according to Thursday court filings.
The deal, which involves Celsius paying $14 million in cash and the remainder in adjusted claims, must be approved by judges in Texas and New York, jurisdictions where Core and Celsius have respectively filed for bankruptcy.
The settlement “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,” a filing by Celsius’ lawyers said, describing the deal – under which Celsius also acquires Cedarvale, an 85-acre Texas mining site – as a “fair, equitable, and a carefully negotiated resolution.”
Celsius had previously filed claims of $312 million after Core powered down Celsius mining rigs in January, citing unpaid dues, and had previously filed motions saying Core should be held in contempt of court.
Celsius creditors are voting on whether to approve a sale to crypto consortium Fahrenheit Holdings, a consortium that includes mining company US Bitcoin Corp.
Author
CoinDesk Analysis Team
CoinDesk
CoinDesk is the media platform for the next generation of investors exploring how cryptocurrencies and digital assets are contributing to the evolution of the global financial system.
