Tether-supported Northern Data is accused of fraud by two former executives

ChainCatcher news, according to the Financial Times, two former Northern Data executives have accused the company of fraud.

It is reported that Northern Data is a Germany-based publicly traded cryptocurrency and AI infrastructure company supported by Tether. The two former executives, Joshua Porter and Gulsen Kama, claim they were fired for exposing alleged fraudulent behavior by the company's CEO and COO.

In a lawsuit filed in the Central District Court of California, Porter and Kama allege that Northern Data made false statements about its financial condition and is suspected of evading taxes amounting to tens of millions of dollars. Despite Northern Data's recent attention due to plans for an IPO in the United States, the company has not yet responded to these allegations.

Northern Data went public in 2018 as a pure cryptocurrency miner and later rebranded to Northern Data, expanding into high-performance computing data centers through acquisitions. The stablecoin issuer Tether holds a 51% stake in the company. Porter and Kama's allegations cover tax issues and financial fraud, claiming they were retaliated against and wrongfully terminated for exposing these issues.