Two former executives of German technology company Northern Data, which is backed by stablecoin giant Tether (USDT), have filed a lawsuit against the company, alleging that they were wrongfully fired after raising concerns. concerns about the company's financial situation and accusations of tax evasion.

Northern Data is Europe's largest bitcoin mining company. In addition to bitcoin mining, the company also operates data centers used for artificial intelligence (AI).

In the recently announced California lawsuit, two executives – Joshua Porter and Gulsen Kama – allege that Northern Data lied to investors about its financial strength, concealing the fact that the company The company is “almost bankrupt,” and in addition, “intentionally evaded taxes to the tune of tens of millions of dollars.”

The allegations come amid rumors that Northern Data is considering a U.S. initial public offering (IPO) of its artificial intelligence unit, which, according to Bloomberg, is valued at up to $16 billion.

Porter joined Northern Data's US branch as COO and was later promoted to CEO of the US branch. Only after being promoted did Porter see the reality of the company's financial situation. According to Porter's lawsuit, Northern Data has "German tax liabilities of $30 million and additional liabilities of nearly $8 million while having only $17 million in cash on its balance sheet and monthly deficit of $3 million to $4 million.”

Porter is also increasingly concerned about the company's potential U.S. tax liabilities. The suit alleges that the company engaged in “rampant tax evasion” in its early years and had no plan to correct it. Porter is concerned that Northern Data's US tax debt "could easily be tens of millions of dollars" and that if audited by the US Internal Revenue Service (IRS), the company could go bankrupt.

Porter took his concerns to his superiors at Northern Data. When his concerns “fell on deaf ears,” as his lawyer described it, Porter threatened to take the matter to the company's board. Soon after, he was fired – a move his boss strangely blamed on “an internal decision to eliminate the North America COO position” – a position he hadn't held in months.

Kama, who began as Chief Financial Officer (CFO) of the U.S. subsidiaries before being promoted to group CFO, reported similar concerns “about accounting and securities fraud” to superiors at Northern Data – “to no avail, as the CEO and COO were perpetuating accounting and securities fraud,” the suit asserts. Northern Data's CEO is Aroosh Thillainathan and COO is Rosanne Kincaid-Smith.

After multiple attempts to warn the company about its alleged fraud, Kama said she was fired in an illegal act of retaliation for her whistleblowing activities.

“Specifically, Kama was fired for her warnings that Northern Data was in clear violation of securities and tax laws and her efforts to ensure that Northern Data did not continue to make fraudulent claims during company audit process and imposed audit and governance controls on Northern Data's top management,” the plaintiffs' attorneys wrote.

Porter and Kama's suit is seeking damages for wrongful dismissal. Although no specific figure has been released, their attorneys wrote in the lawsuit that Northern Data's alleged activities could expose it to "millions of dollars in liability."

A Tether spokesperson declined to comment on “ongoing legal issues” but added: “We reaffirm our commitment to investors and stakeholders to maintain trust and adhere to the principles that guide our operations. We always operate with the highest standards of integrity and transparency and remain confident in the long-term potential of the company and the industry.”

Source: https://tapchibitcoin.io/northern-data-bi-hai-cuu-giam-doc-khoi-kien.html