Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Regulators Focus Attention on Crypto and AI Connections Following Northern Data Raids

Regulators Focus Attention on Crypto and AI Connections Following Northern Data Raids

Bitget-RWA2025/09/26 20:38
By:Coin World

- German prosecutors raided Northern Data AG, a Tether-owned firm, triggering a 12% stock drop amid legal scrutiny. - The company shifted from crypto mining to AI infrastructure but faces regulatory concerns over its crypto ties and governance disputes. - Tether's ownership and a potential $1.17B Rumble acquisition raise risks of reputational damage and stricter oversight for crypto-linked AI firms. - Market volatility intensified as prosecutors remain silent on investigation scope, leaving stakeholders in

Regulators Focus Attention on Crypto and AI Connections Following Northern Data Raids image 0

German authorities have verified that law enforcement has searched the offices of Northern Data AG, a technology company listed in Frankfurt and primarily owned by

Holdings Ltd., previously recognized for its involvement in cryptocurrency mining. The Frankfurt prosecutor’s office revealed the raids, which took place on Thursday, but did not disclose the specific subjects or the focus of the probe. More information is anticipated on Monday. Following the news, Northern Data’s stock price dropped by up to 12%, highlighting investor unease about renewed legal attention on a firm already linked to earlier controversies.

In recent years, Northern Data has shifted its focus from crypto mining to providing artificial intelligence (AI) computing infrastructure, now operating more than 22,000 AI chips at sites across Europe. The company recently entered into a partnership with G42, an AI enterprise based in Abu Dhabi, granting G42 access to half of Northern Data’s AI computing resources. This strategic move reflects a broader industry pivot as demand for AI technology accelerates. Nevertheless, the company’s background as a major provider of computing power for

mining has subjected it to both regulatory and environmental examination.

Tether Holdings SA, which issues the world’s most widely used stablecoin (USDT), holds a controlling stake in the company, adding further complexity. Tether itself has long been under scrutiny from regulators over its reserve practices and transparency. Northern Data’s relationship with Tether has come under the spotlight again due to recent events, such as a possible all-stock buyout proposal from Rumble Inc.—a conservative video platform where Tether is also an investor. Should the $1.17 billion transaction proceed, it would represent a major consolidation of assets backed by Tether.

This new investigation follows a series of governance issues. In 2024, two ex-directors accused Northern Data of financial misstatements and tax fraud, claims the company refuted. The case was ultimately dismissed, but it exposed weaknesses in the company’s internal controls. Prosecutors have yet to indicate whether the current inquiry is connected to previous disputes, financial disclosures, or other issues entirely.

The searches highlight the regulatory challenges faced by companies operating at the crossroads of digital assets and new technologies. By moving into AI infrastructure, Northern Data has become a significant player in Europe’s fast-growing AI market, which is drawing large investments from both public and private sectors. However, any accusations of financial wrongdoing could trigger more intense regulatory oversight for firms with cryptocurrency backgrounds. For Tether, its association with Northern Data—while already dealing with its own legal hurdles—could further harm its reputation.

The market’s response was swift and negative. By mid-afternoon in Frankfurt, Northern Data’s shares had fallen 8%, deepening a downward trend that has lasted for several months. Observers point out that recent changes in company leadership, such as the elevation of COO John Hoffman to co-CEO, may be part of efforts to steady the business during turbulent times. Still, the raids have introduced fresh uncertainty, especially as the company considers a potential merger with Rumble and expands its AI infrastructure presence.

The final outcome of the investigation is still unknown, but its impact could reach beyond Northern Data. Should any wrongdoing be discovered, it may pave the way for tighter regulation of companies merging crypto roots with AI innovation. For now, the Frankfurt prosecutor’s office has not provided a timeline for its conclusions, leaving investors and stakeholders waiting for further updates as the weekend progresses.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Hyperliquid (HYPE) Price Soars: DeFi Infrastructure Innovation Accelerates

- Hyperliquid (HYPE) dominates decentralized perpetual trading with 70–80% market share via sub-second block times and $5B+ TVL growth in 2025. - Institutional adoption accelerates through SEC compliance, BlackRock-backed USDH stablecoin, and $1B digital asset treasury partnerships. - Price targets of $38–$50 face risks from $314M token unlock and governance controversies over centralized control perceptions. - HYPE's $3T+ trading volume and $15B open interest highlight its role bridging DeFi's speed with

Bitget-RWA2025/11/30 04:54
Hyperliquid (HYPE) Price Soars: DeFi Infrastructure Innovation Accelerates

The HYPE Token's Rapid Surge: What's Fueling It, and Is It Worth Jumping In?

- Hyperliquid's HYPE token surged in 2025 due to technical innovation, institutional backing, and retail FOMO-driven speculation. - On-chain movements like $90M staking-to-spot transfers and a $314M token unlock on Nov 29, 2025, highlight liquidity risks and volatility concerns. - Market psychology amplifies HYPE's momentum through viral campaigns, fee cuts, and social media echo chambers, mirroring broader 2025 crypto trends. - Analysts debate HYPE's sustainability: while institutional partnerships and BL

Bitget-RWA2025/11/30 04:54
The HYPE Token's Rapid Surge: What's Fueling It, and Is It Worth Jumping In?

Navigating the Hyperliquid Boom: Key Factors Behind Demand and Essential Insights for Investors

- Hyperliquid (HYPE) surges as decentralized derivatives gain traction, driven by high-speed blockchain and fee cuts via HIP-3 upgrade. - Platform's $1B+ daily volumes and equity perpetuals (e.g., TSLA-USDC) attract retail/institutional investors despite 100x leverage risks. - $10.8B token unlock over two years and regulatory uncertainty pose challenges, while liquidity incentives create strategic entry opportunities. - Retail demand spikes via referral programs, but high-leverage losses (e.g., $727K liqui

Bitget-RWA2025/11/30 04:54
Navigating the Hyperliquid Boom: Key Factors Behind Demand and Essential Insights for Investors