Northern Data, a European Bitcoin mining giant supported by Tether, faces allegations of fraud from former executives amid its US IPO efforts. The ex-directors, Joshua Porter and Gulsen Kama, claim they were dismissed for whistleblowing on financial misconduct and tax evasion.
In a lawsuit filed in California, Porter and Kama accuse Northern Data of misrepresenting its financial condition and committing tax evasion worth tens of millions. Porter, fired in March 2023, alleges the company is nearly insolvent. Kama, dismissed three months later, accuses CEO Aroosh Thillainathan and COO Rosanne Kincaid-Smith of financial misdeeds. KPMG also raised concerns about the company’s liquidity.
Northern Data is considering an IPO in the U.S. next year, potentially valuing its AI and data center business between $10 billion and $16 billion. The firm is contemplating selling a minority stake before the listing. In September 2023, Tether announced a partnership with Northern Data on AI and data storage, denying reports of a $420 million GPU purchase.
The outcome of these allegations could significantly impact Northern Data’s financial strategies and market reputation.
