Bitcoin miner Northern Data cleared as ex-employees withdraw whistleblower claims

A lawsuit against Bitcoin miner Northern Data has been dismissed after former employees retracted key allegations and acknowledged possible misrepresentations in their claims.

Bitcoin (BTC) miner Northern Data has seen a lawsuit dismissed after two former executives dropped claims of wrongful termination and whistleblower retaliation, acknowledging possible misunderstandings in their initial claims.

The lawsuit, filed by former chief operating officer Joshua Porter and former chief financial officer Gulsen Kama, initially alleged wrongful termination and whistleblower retaliation, alleging the company engaged in questionable financial practices, including tax evasion and misleading investors about its solvency. The two executives alleged that Northern Data concealed its financial liabilities while maintaining limited cash reserves and risked potential bankruptcy if audited.

In the plaintiffs’ signed statements seen by Crypto.news, both walked back the whistleblower retaliation claims, saying they may have “misstated and/or misunderstood” the facts. In their statements, both admitted that their separation was not due to the notice.

Northern Data welcomed the dismissal, stressing the firm’s focus on transparency, with a spokesperson for the firm saying “integrity and transparency are at the heart of everything we do”.

Reports in early October indicated that Northern Data was considering a U.S. IPO for its AI division at an estimated $16 billion valuation. The dismissal of the case removes a potential hurdle as the company moves forward with its IPO plans and continues to expand in the artificial intelligence sector.