Court Dismisses Fraud Lawsuit Filed by Two Former Executives Against Northern Data

On October 31st, the Central District Court of California dismissed a fraud lawsuit filed by two former executives against bitcoin mining and data center operator Northern Data. According to court records, the case was dismissed earlier this month following a voluntary dismissal by plaintiffs Joshua Porter, who served as chief operating officer of the company's U.S. division, and Gulsen Kama, who served as chief financial officer of the company's U.S. division.

The two alleged in the April lawsuit that Northern Data falsely inflated its financials and allegedly evaded tens of millions of dollars in taxes.

Additionally, Northern Data recently announced that it is considering divesting its bitcoin mining subsidiary, Peaking Mining, in order to focus on its artificial intelligence and cloud computing businesses.

The news comes after Tether-backed Northern Data was accused of fraud by two former executives.