PANews reported on July 5 that according to the Financial Times, two former Northern Data executives accused the company of fraud. Northern Data is a German listed cryptocurrency and AI infrastructure company supported by Tether. The two former executives, Joshua Porter and Gulsen Kama, said they were fired for exposing the suspected fraud of the company's CEO and COO.
Porter and Kama allege in the lawsuit filed in the Central District Court of California that Northern Data misrepresented its financial condition and evaded tens of millions of dollars in taxes. Although Northern Data has recently attracted much attention for its planned IPO in the United States, the company has not yet responded to the allegations.
Northern Data went public in 2018 as a pure cryptocurrency miner, and later changed its name to Northern Data, expanding into high-performance computing data centers through acquisitions. Stablecoin issuer Tether holds a 51% stake in it. Porter and Kama's allegations cover tax issues and financial fraud, and they claim that they were retaliated against for exposing these issues.