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Bitcoin Miner Core Scientific Facing Lawsuit for Improperly Disclosing Financials

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Cryptocurrency mining firm Core Scientific has been hit with a lawsuit after failing to disclose a string of adverse financial conditions in a statement to shareholders earlier this year. Court submission Submitted on Monday.

Plaintiff and shareholder Mei Pang alleges that the company knowingly provided false information to its shareholders from March 3 to October 28 this year.

On March 3, research and investment research firm Culper Research released a report revealing that Core had “overstated its profitability” and entered into a dispute with Core’s biggest client, Bitcoin miner Griffon. Gryphon did not have the funds to purchase the mining rigs Core Scientific would need to host in their own data centers.

After the report was published that day, Core Scientific’s stock plunged 9.4% ($0.72) to close at $6.98.

More facts were revealed throughout the year. dispute with Cryptocurrency lender Celsius is now bankrupt That led to a lawsuit on September 28th.

Celsius will host clients using data centers by Core Scientific to set up their own mining operations, delay the deployment of Celsius-provided rigs, and ensure that the power supplied to the deployed rigs is subject to the terms of the contract. claimed to have been less than requested in the

Celsius also alleged that Core imposed inappropriate surcharges to pass the blame in the face of rising energy costs.

Core Scientific finally revealed that something was happening on October 27th.

On the day bankruptcy warningthe company’s stock fell 78.1% to $0.789, closing at $0.221 per share.

Core Scientific did not immediately respond Decryptionrequest for comment.

More than just Core Scientific

Many crypto miners are struggling to survive in a bearish climate and rising energy prices.

Core Scientific sold 7,202 bitcoins ($165 million) in June at an average price of $23,000. A large sale ishistorical inflationsaid Chief Executive Officer Mike Levitt.

July is 2 consecutive months Core Scientific sold more Bitcoin than it mined.

In August, Controversial Bitcoin Miner Greenwich generation reports Net loss of $107.9 million In the second quarter, we canceled plans to expand into Texas.

Compute North is a data center primarily for mining companies. Chapter 11 bankruptcy filing in September.

Mining company Argo recently $27 million pay raise With an unnamed investor without giving reasons.Like many miners this year, Argo Dumping Bitcoin Reserves You’re trying to inflate your balance sheet.

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