According to recent court documents, cryptocurrency mining service providers Celsius and Core Scientific (CORZ) have tentatively agreed to a $45 million settlement to end their protracted legal battle.
Judges in Texas and New York, where Core and Celsius, respectively, have filed for bankruptcy, must approve the settlement, which calls for Celsius to pay $14 million in cash and the remaining amount in modified claims.
The settlement “resolves the protracted and expensive litigation with Core, and cuts off the significant costs that would have been incurred if the parties were to fully litigate their claims,” according to a filing by Celsius’ attorneys. The agreement, under which Celsius also acquires Cedarvale, an 85-acre Texas mining site, is described as a “fair, equitable, and a carefully negotiated resolution.”
Following Core’s January shutdown of Celsius mining rigs due to unpaid fees, Celsius filed claims for $312 million and motions arguing that Core ought to be held in contempt of court.
Fahrenheit Holdings, a group that includes the mining company US Bitcoin Corp., is the prospective buyer of Celsius, and its creditors are voting on whether to approve the deal.