Core Scientific Has Knocked Back A Claim Of $4.7 Million From Celsius

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Core Scientific
Core Scientific

Core Scientific, the bankrupt mining firm for Bitcoin, recently objected to paying an administrative claim sum of $4.7 million, which had been issued by Celsius Network, a crypto lender.

This then reportedly led to a battle between the firms over multiple contractual obligations. According to the objection that was filed in the Texas bankruptcy court on the 5th May, the mining firm had asked Celsius; claims to be rejected as the firm couldn’t prove that it was entitled to a payment.

The objection mentioned that the request made by Celsius for immediate payment and allowance of the alleged admin claim ignored that the mining firm had quite a few substantial claims against the crypto lender. For context, the mining firm had initially signed a contract with the lending firm in 2020 in order to host the cryptocurrency holdings in the data centers of Core. However, due to an increase in power price, the mining firm passed the additional costs on the Celsius.

Core Scientific Has Claimed That It Was Cheated Out Of Money By Celsius

Despite Celsius paying the costs initially, the lender then abruptly ceased all the payments after it had filed for bankruptcy- as explained by Core Scientific in the objection. In the objection, the mining firm wrote that if there was anyone who had benefited unjustly from the entire situation, it was Celsius. According to the mining firm, which has turned defunct now, the lending firm had been sitting on around $8 million that it owed to Core, due to a blatant post-petition violation. 

According to Core Scientific, Celsius now owes it an approximate sum of $11 million, a sum that would keep accruing an extra $28,000 in fees and interest with every single day, as argued by the lawyers of the Bitcoin mining firm.