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.
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.