German prosecutors have confirmed that police raided premises connected to Frankfurt-based computing group, Northern Data AG, intensifying scrutiny of one of Europe’s most prominent companies operating in the worlds of cryptocurrency and artificial intelligence.
A spokesperson for the Frankfurt prosecutor’s office stated that “raids in connection with Northern Data” were conducted on Thursday, declining to disclose the targets or what investigators were searching for.
The agency said further details would be provided on Monday.
Northern Data did not immediately respond to requests for comment. Its shares slipped following news of the raids, with investors unsettled by the prospect of renewed legal exposure for a company already dogged by controversy.
Northern Data’s stock has been on a slide. Source: Google Finance
Northern Data went from crypto mining to AI infrastructure
Northern Data initially rose to prominence as a provider of computing resources for cryptocurrency miners. But as energy costs soared and regulatory scrutiny mounted, like many infrastructure providers, the company moved toward the promising and booming artificial intelligence and cloud computing industry.
In July, it was reported that the company was entering a deal with Abu Dhabi AI group G42. It was disclosed that Northern Data was going to allow G42’s cloud computing arm to access half of the over 22,000 AI chips it manages across facilities in Europe.
On Monday, it reshuffled its leadership, naming chief operating officer John Hoffman as co-chief executive officer in a move framed as part of its growth strategy.
Tether Holdings SA, the issuer of the world’s largest stablecoin USDT, is Northern Data’s majority shareholder. Tether has also poured money into conservative video platform Rumble Inc. In August, Rumble was reportedly weighing an all-stock offer for Northern Data that would value the target at about $1.17 billion.
Past allegations resurface
The raids come against a backdrop of prior allegations about Northern Data’s business conduct. In 2024, two former directors accused the company of fraud, misrepresentation of financials and tax evasion. Northern Data denied those claims.
Though the allegations were withdrawn and the case dismissed that same year, the episode exposed governance weaknesses.
The prosecutor’s office has not said whether the current investigation is linked to past disputes, financial reporting, tax compliance, or new matters.
High stakes for Tether and AI sector
The raids highlight the risks facing firms at the intersection of digital assets and emerging technologies. Tether, itself the subject of long-running regulatory questions about reserves and disclosures, could find its reputation further tested by association.
The scrutiny also reverberates across Europe’s AI infrastructure industry, which is drawing billions in investment from governments and private funds. If prosecutors allege financial improprieties, it could set a precedent for tighter oversight of companies that blend crypto origins with next-generation AI computing.
Adding to the uncertainty is the potential Rumble acquisition.
With prosecutors promising more information on Monday, the scope of the investigation remains uncertain. Until then, Northern Data, its backers and market participants face a weekend of questions without answers.
