Celsius and Core Scientific Settle Contentious Mining Dispute with $45 Million Agreement
In a significant development, crypto mining providers Celsius and Core Scientific (CORZ) have reached a tentative $45 million settlement to put an end to a prolonged legal battle, as revealed in court filings on Thursday.
The agreement entails Celsius making a payment of $14 million in cash, with the remaining amount covered through adjusted claims. However, this resolution is subject to approval by judges in Texas and New York, the respective jurisdictions where Core and Celsius have filed for bankruptcy.
The settlement not only brings an end to the drawn-out and costly legal conflict with Core but also curtails the substantial expenses that both parties would have incurred had they pursued full litigation of their claims. Celsius’ legal representatives described this resolution as “fair, equitable, and a carefully negotiated resolution.” Additionally, as part of the agreement, Celsius gains ownership of Cedarvale, an 85-acre mining site located in Texas.
The dispute originally erupted when Celsius lodged claims amounting to $312 million after Core shut down Celsius’ mining rigs in January, citing unpaid dues. Prior to the settlement, Celsius had filed motions urging the court to hold Core in contempt.
Currently, Celsius creditors are in the process of voting to decide whether to approve a sale to the crypto consortium known as Fahrenheit Holdings. This consortium includes the mining company US Bitcoin Corp and is poised to play a pivotal role in the resolution of this contentious mining dispute.
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