Crypto mining service providers Celsius and Core Scientific (CORZ) have reached a preliminary settlement worth $45 million to put an end to their long-standing legal dispute. According to Tuesday court filings, this resolution is contingent on approval from judges in Texas and New York, the respective jurisdictions where Core and Celsius have filed for bankruptcy.
This settlement effectively brings to a close the prolonged and costly legal battle between the two companies and puts a halt to the substantial expenses that would have arisen if they had continued to litigate their claims. Celsius’ legal representatives characterized this agreement as a “fair, equitable, and meticulously negotiated resolution.”
The deal entails Celsius making a payment of $14 million in cash, with the remaining sum settled through adjusted claims. Additionally, as part of the agreement, Celsius will acquire Cedarvale, an 85-acre mining site located in Texas, media reports said.
The dispute initially arose when Core Scientific powered down Celsius’ mining rigs in January, citing unpaid dues. Celsius responded by filing claims totaling $312 million and had previously submitted motions alleging that Core should be held in contempt of court.
Currently, Celsius creditors are in the process of voting on whether to approve a sale to the crypto consortium known as Fahrenheit Holdings, which includes the mining company US Bitcoin Corp.