{"id":18517,"date":"2023-05-09T05:27:39","date_gmt":"2023-05-09T05:27:39","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/unjustly-enriched-core-scientific-knocks-back-4-7m-claim-from-celsius\/"},"modified":"2023-05-09T05:27:41","modified_gmt":"2023-05-09T05:27:41","slug":"unjustly-enriched-core-scientific-knocks-back-4-7m-claim-from-celsius","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/unjustly-enriched-core-scientific-knocks-back-4-7m-claim-from-celsius\/","title":{"rendered":"\u2018Unjustly enriched:\u2019 Core Scientific knocks back  $4.7M claim from Celsius"},"content":{"rendered":"<div data-v-6da673f8=\"\">\n<p>Bankrupt Bitcoin (BTC) mining firm Core Scientific has objected to paying a $4.7 million administrative claim put forward by crypto lender Celsius Network, leading to a battle between the firms over contractual obligations.<\/p>\n<p>According to the objection, which was filed in Texas bankruptcy court on May 5, Core Scientific has asked that Celsius Network\u2019s $4.7 million administrative claims be rejected as the firm cannot prove it is entitled to one.<\/p>\n<p>\u201cCelsius\u2019 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,\u201d wrote the objection. <\/p>\n<p>For context, Core first signed a contract with Celsius in 2020 to host its cryptocurrency holdings in Core\u2019s data centers. However, due to an increase in the price of power, Core passed these additional costs on to Celsius, an allowance that was reportedly stipulated in the original contract. <\/p>\n<figure><figcaption style=\"text-align: center;\"><em>Core Scientific\u2019s 2020 contract with Celsius Network. Source: <\/em><em>Court Filing<\/em><em>.<\/em><\/figcaption><\/figure>\n<p>Despite Celsius initially paying these costs, the crypto lender ceased payments after it filed bankruptcy, Core Scientific claimed in the objection. <\/p>\n<p>\u201cIf anyone has been unjustly enriched here, it is Celsius,\u201d wrote Core Scientific in the objection. According to the now-defunct Bitcoin miner, Celsius has been \u201csitting on almost $8 million of money it owes to Core&#8221; due to a \u201cblatant post-petition violation\u201d of the agreed-upon dispute resolution mechanism.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Bittrex files for Chapter 11 bankruptcy just weeks after SEC charges<\/em><\/strong><\/p>\n<p>In total, Celsius now allegedly owes Core Scientific approximately $11 million, a sum that accrues an additional $28,000 in fees and interest with each passing day, the Bitcoin mining firm&#8217;s lawyers argued.<\/p>\n<p>The conflict between the two firms has been raging since Oct. 19, when Core Scientific first accused Celsius of failing to pay its power bills, citing the non-payments as a significant factor in the liquidity issues that led to the embattled Bitcoin miner filing for Chapter 11 bankruptcy on Dec. 21.<\/p>\n<blockquote><p>\u201cThe millions of dollars Celsius shortchanged Core after Celsius\u2019s bankruptcy filing plus the millions of dollars in litigation\u2026significantly contributed to Core\u2019s liquidity drain and eventual chapter 11 filing.\u201d<\/p><\/blockquote>\n<p>On Dec. 28, Core Scientific filed a motion seeking approval to reject Celsius\u2019 contracts, claiming the firm\u2019s failure to pay its power bills constituted a material breach of contract. On Jan. 3 Celsius agreed to let Core Scientific shut down more than 37,000 Bitcoin mining rigs the miner was hosting for the crypto lender. <\/p>\n<p><strong><em>Magazine: How to control the AIs and incentivize the humans with crypto<\/em><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bankrupt Bitcoin (BTC) mining firm Core Scientific has objected to paying a $4.7 million administrative claim put forward by crypto lender Celsius Network, leading to a battle between the firms over contractual obligations. According to the objection, which was filed in Texas bankruptcy court on May 5, Core Scientific has asked that Celsius Network\u2019s $4.7 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18518,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[42],"tags":[],"class_list":["post-18517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>\u2018Unjustly enriched:\u2019 Core Scientific knocks back $4.7M claim from Celsius | NFT &amp; Crypto News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nftandcrypto-news.com\/crypto\/unjustly-enriched-core-scientific-knocks-back-4-7m-claim-from-celsius\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u2018Unjustly enriched:\u2019 Core Scientific knocks back $4.7M claim from Celsius | NFT &amp; Crypto News\" \/>\n<meta property=\"og:description\" content=\"Bankrupt Bitcoin (BTC) mining firm Core Scientific has objected to paying a $4.7 million administrative claim put forward by crypto lender Celsius Network, leading to a battle between the firms over contractual obligations. 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