‘Unjustly enriched’: Core Scientific knocks back $4.7M claim from Celsius

Bankrupt Bitcoin (BTC) mining company Core Scientific has actually objected to paying a $4.7 million administrative claim put forward by crypto lending institution Celsius Network, resulting in a fight between the companies over contractual obligations.According to the objection filed in Texas personal bankruptcy court on May 5, Core Scientific has asked that Celsius Networks $4.7 million administrative claims be rejected as the firm can not show it is entitled to one.” Celsius demand for allowance and immediate payment of the Celsius declared admin claim disregards that Core has considerable claims against Celsius, which Core thinks go beyond the Celsius declared admin claim,” composed the objection. For context, Core first signed an agreement with Celsius in 2020 to host its cryptocurrency holdings in Cores data centers. Nevertheless, due to an increase in the cost of power, Core passed these extra costs on to Celsius, an allowance that was apparently specified in the initial agreement. Core Scientifics 2020 agreement with Celsius Network. Source: Court filingDespite Celsius initially paying these costs, the crypto lender stopped payments after it submitted personal bankruptcy, Core Scientific declared in the objection. “If anybody has actually been unjustly enhanced here, it is Celsius,” Core Scientific wrote in the objection. According to the now-defunct Bitcoin miner, Celsius has been “sitting on nearly $8 million of money it owes to Core” due to a “blatant post-petition infraction” of the agreed-upon disagreement resolution mechanism.Related: Bittrex files for Chapter 11 insolvency simply weeks after SEC chargesCelsius now owes Core Scientific an overall of approximately $11 million, a sum that accrues an additional $28,000 in charges and interest with each passing day, the Bitcoin mining companys attorneys argued.The dispute between the two companies has been raving given that Oct. 19, when Core Scientific first implicated Celsius of stopping working to pay its power bills, mentioning the non-payments as a substantial factor in the liquidity concerns that led to the embattled Bitcoin miner declare Chapter 11 personal bankruptcy on Dec. 21.” The countless dollars Celsius scammed Core after Celsiuss bankruptcy filing plus the millions of dollars in lawsuits … significantly added to Cores liquidity drain and eventual chapter 11 filing.” On Dec. 28, Core Scientific filed a motion looking for approval to reject Celsius contracts, claiming the companys failure to pay its power costs constituted a product breach of agreement. On Jan. 3, Celsius agreed to let Core Scientific shut down more than 37,000 Bitcoin mining rigs that the miner was hosting for the crypto loan provider. Publication: How to control the AIs and incentivize the human beings with crypto

Thank you for reading this post, don't forget to subscribe!