Bitcoin

Northern

In a significant twist amid its planned initial public offering (IPO), European Bitcoin mining firm Northern Data is accused of fraud by former executives who claim they were dismissed for whistleblowing, according to <a href="https://www.kommersant.ru/doc/6807446" rel="noopener noreferrer nofollow">Kommersant</a>.
Northern Data, a major player in the Bitcoin mining industry backed by Tether, is now under legal scrutiny. Former executives Joshua Porter and Gulsen Kama have filed a lawsuit in the California Central District Court, alleging that the Frankfurt-based company misled investors and regulators about its financial health and engaged in substantial tax evasion.
Porter, who was terminated in March 2023, alleges that Northern Data is teetering on insolvency with substantial tax liabilities. Kama, dismissed in June 2023, accuses CEO Aroosh Thillainathan and COO Rosanne Kincaid-Smith of financial misconduct. According to the Financial Times, global auditor KPMG also raised concerns about the company’s liquidity, prompting a switch to Liebhart &amp; Kollegen.
The lawsuit claims that Northern Data’s financial misrepresentation and tax evasion could involve amounts up to tens of millions of dollars. Specifically, the company is accused of fabricating financial statements to portray a stronger fiscal position to investors and regulators, potentially deceiving stakeholders by approximately €50 million in overstated assets and revenues.
Despite these allegations, Northern Data is moving forward with plans for a U.S. IPO, targeting a valuation between $10 billion and $16 billion. Bloomberg reports that the company is considering selling a minority stake in its AI cloud computing and data center unit to investors before the listing. This IPO could become one of the largest tech public offerings of the year, aiming to attract substantial institutional investment.

Northern Data Faces Fraud Allegations Amid IPO Plans

Ultramining_Eng

Other articles published on Jul 6, 2024

July 2024’s Game-Changing Crypto Projects

Hyperlane Announces an Exclusive Partnership with BOB

Free Crypto Airdrops: July 2024

Top Essential Tokens for Your Crypto Wallet

Exploring 4 Tokens with Potential to Mirror Solana (SOL)'s Success

API3 Increases Data Reliability in the Web3 Ecosystem

Join our free newsletter for daily crypto updates!