Unjust Gains: Core Scientific Rejects $4.7M Claim from Celsius
Core Scientific claims the cryptocurrency lender owes it even more money and has rejected a multi-million-dollar administrative $4.7M Claim from Celsius Network.
Moreover, Core Scientific, a bankrupt Bitcoin mining company, has objected to paying a $4.7 million administrative claim made by Celsius Network. The Celsius Network is a cryptocurrency lender, which caused an argument between the companies over their contractual commitments.
Keys Takeaways
- Core Scientific rejected $4.7M administrative claims from the Celsius Network.
- The two companies have been conflicted with one another for not paying their electricity bill.
- Core Scientific keeps Celsius’s Bitcoin assets.
- Celsius network owes $8 million money to Core Scientific.
- Celsius Network agreed to allow Core Scientific to shut down over 37,000 Bitcoin mining machines.
Core Scientific Rejects $4.7M Claim from Celsius
Core Scientific has requested that the $4.7 million in administrative claims made by Celsius Network be denied. According to the objection, the company cannot substantiate its eligibility, so it filed in Texas bankruptcy court on 5 May.
In 2020, Core and Celsius initially agreed to a contract. Under this contract, Core would keep Celsius’ Bitcoin assets. However, Core passed on these extra expenses to Celsius due to a rise in the cost of electricity. The original contract includes these allowances.
According to Core Scientific’s objection, after declaring bankruptcy Celsius stopped paying despite paying these expenses.
Core Scientific submitted the objection that Celsius is the one who has unfairly benefited in this situation. Celsius has been holding onto approximately $8 million in money it owes to Core.
This is due to an apparent post-petition breach of the agreed-upon dispute resolution system, according to the now-defunct Bitcoin miner.
The attorneys for the Bitcoin mining company said that Celsius now pays Core Scientific a total of almost $11 million. The $11 million is an amount that grows by $28,000.
Since 19 Oct, when Core Scientific initially accused Celsius of not paying its electricity bills, the two companies have conflicted with one another.
Core Scientific cited the non-payments as a major contributor to the liquidity problems resulting in the troubled Bitcoin miner declaring bankruptcy on 21 Dec Chapter 11.
On 28 Dec, Core Scientific submitted a motion asking permission to reject contracts Celsius. It claims that the company broke the terms of the agreement by failing to pay its electricity bills.
Moreover, on 3 Jan, Celsius consented to allow Core Scientific to close more than 37,000 Bitcoin mining machines. The miner was running these machines for the cryptocurrency lending market.
The $4.7M Claim from Celsius Left Crypto Community Shaken
Angelick_7 announced on Twitter that Core Scientific, a bankrupt cryptocurrency miner, refuses to pay any administrative claims to Celsius, claiming the former cryptocurrency lender pays $11 million in unpaid electricity bills.
CFD.net.au announced on Twitter that Core Scientific rejected Celsius’s claim for $4.7 million.
STCK.PRO announced on Twitter that Core Scientific denied accepting multi-million dollars from the Celsius network, saying that it owes a greater amount from cryptocurrency investors.
Do You Know?
- Core Scientific, a major mining company, was the subject of a $4.7 million claim from Celsius, a rival mining firm.
- Celsius alleged that Core Scientific had been unjustly enriched due to a deal between the two companies.
- The claim by Celsius was rejected by Core Scientific, who argued that the deal was in their favor.
- Core Scientific’s argument was based on the fact that the deal gave them a greater share of the profits from the venture.
- The dispute between Core Scientific and Celsius was eventually resolved after the two companies reached an agreement.
Crux:
Core Scientifics and Celsius Network have conflicted with one another in paying electricity bills. A bankrupt Bitcoin mining company Core Scientific rejected the Celsius network’s $4.7 million administrative claim.