Core Scientific ordered to mediate with Celsius Mining over claims

By Sarah Lizee

Olympia, Wash., June 20 – Core Scientific, Inc.’s motion for mediation with Celsius Mining, LLC (Celsius Network LLC) regarding their claims against each other was approved Friday by the U.S. Bankruptcy Court for the Southern District of Texas, according to an order.

Judge Marvin Isgur will act as mediator. He will decide the scope and procedures for the mediation after consultation with the parties.

The mediation will start on July 11.

As previously reported, Core had asked for mediation to be guided by Isgur due to the intricacies of the parties’ competing claims against each other, the fact that the dispute needs to be addressed quickly to avoid disrupting Core’s Chapter 11 exit and the fact that both parties are Chapter 11 debtors.

Core Scientific’s official committee of unsecured creditors had expressed support for the mediation.

“The debtors and Celsius are ideal candidates for mediation,” the committee said in a statement.

“What started as an agreement by the debtors to host Celsius’ miners has turned into a sprawling litigation in which each party asserts multiple claims against the other alleging hundreds of millions of damages in the aggregate.”

Core Scientific is an Austin, Tex.-based Bitcoin mining company. The company filed bankruptcy on Dec. 21, 2022 under Chapter 11 case number 22-90341.

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