Payment History and New Value Defenses Led to a Settlement for 3% of the Complaint Amount

The Debtors were leaders in developing sustainable data centers for blockchain and cryptocurrency mining, operating multiple facilities that served various customers with hosting, mining, and equipment sales.

The Defendant, a Minnesota logistics company, provided storage, fulfillment, and transportation services under a Warehouse Distribution Agreement that began in early 2022. They invoiced weekly for storage, per order for fulfillment, and per shipment for transportation.

Despite the Debtors often paying beyond the invoice terms, we showed that the payments were within the ordinary course of business. We also proved that the Defendant delivered over $300,000 in new services to the Debtors, representing significant new value. Ultimately, we settled the case with a favorable settlement offer.

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