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Core Scientific submitted<\/a> a filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday in line with the company\u2019s plan to recover $5.4 million owed by Celsius Mining, the digital asset mining business attached to the bankrupt crypto lender.<\/p>\n\n\n\n The company runs crypto mining operations as well as hosting services as part of its revenue generation strategy. Prior to its chapter 11 bankruptcy filing in July 2022, Celsius and Core Scientific had an agreement where Core Scientific provided crypto hosting for the lender\u2019s mining business. <\/p>\n\n\n\n According to the filing, the hosting fees amount to $5.4 million but the lender has been unable to meet the payment obligation due to financial difficulties following exposure to Terra\u2019s tokens. Core Scientific asked the beleaguered lender to settle the debt, taking legal action towards this effect.<\/p>\n\n\n\n In response, Celsius’ lawyers argued during proceedings that the crypto miner is in violation of the stay protection provided by the chapter 11 bankruptcy filing. The filing restricts creditors from pursuing immediate legal redress until the court decides otherwise. <\/p>\n\n\n\n Core Scientific denied the violation claims and said the crypto miner intends to “vigorously defend its interests\u201d, per Wednesday\u2019s SEC filing. Core has also hired lawyers towards seeking a \u201cresolution from the bankruptcy court and payment of any outstanding amounts owed under the Agreement\u201d. <\/p>\n\n\n\n Core Scientific is one of many claimants in the Celsius bankruptcy case. The crypto lender reportedly owes over $1.2 billion to creditors at press time. Recent financial documents submitted to the South District of New York court in charge of the case also revealed several withdrawals<\/a> made by former CEO Alex Mashinsky and two other top-ranking executives.<\/p>\n\n\n\nCelsius In Legal Battle After Bankruptcy Filing <\/h2>\n\n\n\n