Celsius Network fails to pay Core Scientific by default, causing financial turmoil
Core Scientific says it's losing about $53,000 a day to cover rising electricity rates that Celsius refuses to pay.
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Cryptocurrency lender Celsius Network's legal journey gained another chapter as Bitcoin (BTC) miner Core Scientific accused the company of refusing to pay its bills since filing for bankruptcy under the chapter 11, according to court documents filed Oct. 19.
Core Scientific, which is one of the largest publicly traded crypto companies, says the default threatens its financial stability, which has already been affected by the crypto winter and high energy costs.
In court filings, Celsius alleges that Core Scientific delayed deployment of the mining rig and provided them with less power than required under their contract. Celsius would seek a court order finding Core in contempt and ordering him to fulfill his obligations. Meanwhile, Core asked the court to force Celsius to pay the outstanding invoices or allow it to honor the contract.
According to bankruptcy court documents filed by Core Scientific:
"Celsius must either honor the contract or Core and Celsius must end their relationship before Celsius causes another business partner to file for insolvency."
According to the record, Celsius owes Core $598,743.20 for post-claim PPT charges related to the August 2022 invoice, plus an additional $1,505,940.08 for post-claim PPT charges related to the September 2022 invoice, totaling $2,104,683.28. "Core continues to lose approximately $53,000 a day to cover electricity rate increases after the petition Celsius refuses to pay," the company said.
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Core Scientific says it's losing about $53,000 a day to cover rising electricity rates that Celsius refuses to pay.
New
Cryptocurrency lender Celsius Network's legal journey gained another chapter as Bitcoin (BTC) miner Core Scientific accused the company of refusing to pay its bills since filing for bankruptcy under the chapter 11, according to court documents filed Oct. 19.
Core Scientific, which is one of the largest publicly traded crypto companies, says the default threatens its financial stability, which has already been affected by the crypto winter and high energy costs.
In court filings, Celsius alleges that Core Scientific delayed deployment of the mining rig and provided them with less power than required under their contract. Celsius would seek a court order finding Core in contempt and ordering him to fulfill his obligations. Meanwhile, Core asked the court to force Celsius to pay the outstanding invoices or allow it to honor the contract.
According to bankruptcy court documents filed by Core Scientific:
"Celsius must either honor the contract or Core and Celsius must end their relationship before Celsius causes another business partner to file for insolvency."
According to the record, Celsius owes Core $598,743.20 for post-claim PPT charges related to the August 2022 invoice, plus an additional $1,505,940.08 for post-claim PPT charges related to the September 2022 invoice, totaling $2,104,683.28. "Core continues to lose approximately $53,000 a day to cover electricity rate increases after the petition Celsius refuses to pay," the company said.
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