Former Executives Level Fraud Allegations Against Northern Data During American IPO Endeavors
In the midst of preparations for an initial public offering, **Northern Data** is contending with serious allegations of deceitful practices, brought forth by ex-executives who claim their dismissal was a consequence of their whistleblowing actions.
The European behemoth in **Bitcoin** mining, supported by the stablecoin proponent **Tether**, finds itself at the heart of a legal maelstrom. Former top brass at Northern Data, Joshua Porter and Gulsen Kama, contend that their termination was a direct result of voicing concerns over fraudulent activities within the company.
A legal battle is unfolding in the California Central District Court, where the two erstwhile executives of the Frankfurt-based firm accuse it of presenting a misleadingly robust financial image to its investors, regulatory bodies, and business associates. They further allege that the company engaged in tax evasion, potentially involving tens of millions of dollars.
Porter, who was relieved of his duties in March 2023, paints a grim picture of Northern Data’s financial health, describing it as teetering on the brink of insolvency, burdened by substantial tax liabilities. Kama, shown the door three months subsequent to Porter, levels accusations of financial impropriety against Northern Data’s CEO Aroosh Thillainathan and COO Rosanne Kincaid-Smith. Echoing these concerns, the international auditing firm KPMG expressed reservations about the company’s liquidity, which eventually led to Northern Data appointing Liebhart & Kollegen as their new auditor.
At the time of writing, Northern Data has not issued any official response to these claims.
In related news, the Bitcoin mining company Bitdeer is set to inaugurate a 570 MW power facility in Ohio.
On another front, Northern Data is deliberating an **IPO** for its fusion of **AI** cloud computing and data center operations in the United States, slated for the upcoming year. Sources cited by Bloomberg estimate the valuation of the enterprise to be in the range of $10 billion to $16 billion. Prior to this public listing, the Frankfurt-based entity is considering the sale of a minority interest in this division to investors.
In a development from September 2023, **Tether** announced a partnership with Northern Data, focusing on AI, peer-to-peer communication, and data storage initiatives. While Tether has not revealed any financial details of this agreement, it has denied reports that it invested $420 million in purchasing 10,000 H100 GPUs from Northern Data.
For further reading:
Tether provides a €575 million debt financing lifeline to Europe’s prominent Bitcoin miner, Northern Data.
