Northern Data Searches: Investigation of Tax Violations in Europe
Date: 2025-09-29 Author: Henry Casey Categories: BUSINESS
According to Bloomberg, law enforcement agencies visited Northern Data's office in Frankfurt. Similar actions were also taken in Sweden, which recently introduced a higher tax on Bitcoin mining. The European Public Prosecutor's Office (EPPO) clarified that the investigations were conducted simultaneously in both countries and are related to suspicions of filing false financial statements to obtain tax breaks.
The Swedish Prosecutor's Office confirmed the arrest of four individuals suspected of value-added tax fraud. Preliminary estimates indicate that the damage to the budget could exceed €100 million.
Northern Data itself stated that the charges are based on a misunderstanding of the tax regulations governing cloud computing equipment and the specifics of mining operations. According to company representatives, the existing reports reflect the actual state of affairs, and the claims are more likely due to differences in the interpretation of legislation.
Tether, which owns a controlling stake in Northern Data, issued a separate statement. The company emphasized that it is not involved in the operational management of the Swedish entity and is conducting its own investigation to assess potential risks. Management assured that it is ready to cooperate with authorities to eliminate any claims against its activities.
Meanwhile, this is not the first time Tether's mining projects have encountered problems. Previously, the Uruguayan agency Busqueda reported that the state-owned power grid operator had disconnected two of the company's mining farms due to unpaid electricity bills totaling approximately $5 million. This incident has further fueled discussions about the financial sustainability of the cryptocurrency mining business.
Northern Data and its shareholders have thus found themselves at the center of a large-scale investigation spanning multiple jurisdictions. European prosecutors are focused on determining whether the tax incentives were used in good faith or whether there was deliberate misrepresentation of the reporting. The outcome of the investigation could impact not only the company's operations but also the regulation of cryptocurrency mining in Europe as a whole.
