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id: 460, Created by Stan Vick Chase, Scout
Core Scientific (CORZ) zeroed out Investors are fighting losses in a Court
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On October 27, 2022, Core Scientific (CORZ) announced that “given the uncertainty regarding the Company’s financial condition, substantial doubt exists about the Company’s ability to continue as a going concern,” and that it is exploring alternatives to its capital structure.
Moreover, the Company held 24 bitcoins, compared to 1,051 bitcoins as of September 30, 2022.
On this news, CORZ stock price dropped 78.1%.
Going back on September 28, 2022, Celsius Network LLC filed a motion to enforce the automatic stay and for civil contempt in bankruptcy proceedings alleging that Core Scientific “has knowingly and repeatedly violated the automatic stay provisions” by refusing to perform its contractual obligations, threatening to terminate the companies’ agreement, and adding improper surcharges.
Earlier on March 3, 2022, Culper Research issued a report alleging, among other things, that Core Scientific “has wildly oversold both its mining and hosting businesses, which it cobbled together in a series of questionable transactions before dumping onto the market via SPAC. “Moreover, the Company had “waived the 180-day lockup on over 282 million shares, making them free to be dumped just 5 trading days” from the time of the report, showing that “insiders have abandoned any pretense of care for minority shareholders.”
Now, Investors have all grounds to suspect that the Company, its Leaders, and its Service Providers breached fiduciary duties to its shareholders.
Breach of Fiduciary duty
Shock Event Date
26 October 2022