Miner Northern Data was reported by former executives to be on the verge of bankruptcy and evading tens of millions of dollars in taxes

The Financial Times reported that two former executives of Northern Data, a large European mining company, sued the company, claiming that they were fired in retaliation for exposing suspected internal financial audits, tax evasion and securities fraud. They emphasized that the company may be on the verge of bankruptcy if it is required to pay tens of millions of dollars in evaded taxes.

Northern Data, which owns Bitcoin mining and artificial intelligence cloud computing businesses, was sued last month by former executives Joshua Porter and Gulsen Kama for wrongful dismissal. They pointed out in recently disclosed legal documents that the company was suspected of Investors concealed and deceived their true financial status and evaded more than tens of millions of dollars in taxes.

Ten million dollars in tax evasion, and he will face bankruptcy if he pays back taxes

First of all, Porter, as the chief operating officer of Northern Data's US branch, learned the company's true financial situation after being promoted to CEO:

The The company has US$30 million in back taxes payable in Germany and nearly US$8 million in liabilities. However, the company only has US$17 million in cash on its books, and its monthly costs are still US$3 million to US$4 million.

At the same time, he also pointed out that in the face of the increasingly clear encryption tax laws in the United States, Northern Data executives did not change its operating structure or tax system, but instead took actions to illegally evade taxes on its mining profits:

The plaintiff is worried about the company’s U.S. tax evasion The amount may exceed tens of millions of dollars, and the company may face bankruptcy if it is fined and required to pay back by the Internal Revenue Service (IRS).

Porter also reported this to the CEO of the head office and asked to report it to the board of directors, but was fired in retaliation.

Deceive investors and partners

In addition, Gulsen Kama, as the chief financial officer of the US branch, actively reported his concerns about financial accounting and securities fraud to the CEO of the head office Aroosh Thillinathan and the chief operating officer Rosanne Kincaid-Smith. However, the company still turned a blind eye:

The CEO and Chief Operating Officer still lied about its financial status to investors and business partners at a meeting in mid-June, trying to hide the fact that it was close to bankruptcy.

The filing reads:

Plaintiff was fired for warning Northern Data of flagrant violations of securities and tax laws and trying to ensure that the company would not continue to make fraudulent statements about its audit process.

In response, Porter and Kama requested damages for their unfair dismissal, and were worried that they might face criminal liability for the company's illegal conduct.

Last Monday, the company just expressed its intention to conduct an initial public offering (IPO) on the Nasdaq exchange in the United States next year, with the company's valuation as high as US$16 billion.

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