The Great Bitcoin Court Clash
In a move that’s got everyone in the cryptocurrency world buzzing (mostly because of the popcorn popping in the background), Core Scientific—who, if you haven’t heard, is navigating the choppy waters of bankruptcy—is standing firm in its objection to a hefty $4.7 million claim from Celsius Network. Cut to Texas bankruptcy court, where the air is thick with legal jargon and the scent of freshly filed paperwork.
Core’s Defense: Claims and Counterclaims
According to the official court filings from May 5, Core Scientific is waving a big ol’ flag of denial, asking the court to reject Celsius’ claim on the grounds that the crypto lender can’t substantiate its entitlement to this cash. What a plot twist! Core argues, and I quote, “Celsius’ request for allowance and immediate payment of the Celsius alleged admin claim ignores that Core has substantial claims against Celsius, which Core believes exceed the Celsius alleged admin claim.” The courtroom drama gets juicier by the second!
History’s Not So Sweet: Contracts and Cost Increases
Flash back to 2020, when Core and Celsius signed a deal that might have seemed like a great idea at the time. That contract was meant to host Celsius’s crypto fortune at Core’s data centers. However, just like that time you forgot to switch off the lights after leaving home, Core had to deal with rising power costs. These costs were then passed on to Celsius—something reportedly spelled out in their contract. Initially, Celsius was all in, happily covering these expenses until their own bankruptcy filing put a spanner in the works.
Unjust Enrichment—Who’s Really Winning?
Core Scientific isn’t holding back in its opinion, arguing that if anyone’s been treated unfairly in this saga, it’s them. “If anyone has been unjustly enriched here, it is Celsius,” they say. Their lawyers allege that Celsius has a striking balance of almost $8 million that it’s neither paid nor acknowledged after the bankruptcy filing. The courtroom just got cozy with some serious accusations!
The Financial Countdown: Interest and Other Dreaded Fees
As if the legal battlefield needed more tension, Core’s lawyers claim that Celsius now owes them an eye-popping total of approximately $11 million. And here’s the kicker—this figure balloons by a preposterous $28,000 each and every day! Talk about racking up more debt than a college student with a credit card! Core argues that the ongoing conflict has severely drained their liquidity, leading them down the slippery path of Chapter 11 bankruptcy by December.
Conclusion: Is the End Near?
With Core Scientific and Celsius Network slogging through legal mud over the past several months—since October 19 to be specific—who knows what’s in store? A motion was even filed late last year to sever ties with Celsius completely, citing repeated failures to pay. And let’s not forget the shutdown of more than 37,000 Bitcoin mining rigs! As the drama unfolds, one thing’s for sure: the crypto courtroom is now a new reality show unworthy of your binge-watching time but not your attention.
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