Tether-Linked Northern Data Offices Raided in Tax Probe

European prosecutors raided offices of Northern Data, linked to Tether, over alleged tax irregularities tied to Bitcoin mining. Four people were arrested.

European Prosecutors Target Northern Data

European Public Prosecutor’s Office (EPPO) confirmed raids on Northern Data offices in both Germany and Sweden. The company, majority-owned by Tether, is under investigation over potential tax misreporting related to Bitcoin mining.

According to Bloomberg, the searches included Northern Data’s Frankfurt office. The case stems from Sweden’s tightened tax rules on Bitcoin mining, which have put pressure on industry players operating in the region.

Four Arrests Amid Tax Fraud Allegations

Swedish prosecutors revealed that four individuals were arrested during the raids. They are suspected of VAT fraud, with damages estimated at over €100 million.

Northern Data denied wrongdoing, arguing that authorities misunderstood how taxation applies to processors used in cloud computing and the broader economics of mining operations.

Tether Launches Internal Review

Tether stated that while it holds a controlling stake in Northern Data, it does not participate in the firm’s management. The company also confirmed it has launched its own internal investigation to evaluate any potential risks.

Industry experts warn that the case could influence Bitcoin mining regulation in Europe, signaling stricter oversight of crypto companies across the region.