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Germany’s financial regulator Northern Data has filed a criminal complaint against senior employees alleging possible market manipulation.
The Frankfurt-listed IT company, which operates a rack of high-powered servers and provides services to bitcoin miners, moved to Buffin on Friday, a day after it released its financial results for 2020.
After a few months of delay the uneducated numbers were much worse than the company’s previous guidelines. Northern 45m- Operating profit of € 60m Contrary to previous expectations, Northern Data reported an operating loss of .3 12.3m. Revenue came in at 16.4m, contrary to the এর 120m – € 140m directive.
Buffin told the FT that Watchdog had identified potential market manipulation to the criminal authorities “in the context of the Northern Data” but declined to comment further. The Frankfurt Criminal Prosecutor, to whom the complaint was filed, did not respond to a request for comment.
A lawyer at Northern Data told FT on Sunday that his client was looking into the matter.
Shares of Northern Data fell 43 percent immediately after news of the criminal complaint, first reported by Wirtshaftsoch, but fell 21 percent on Friday, recovering half of their losses in late transactions.
Christian Angermeyer, a German financier who is an influential investor in Northern Data, declined to comment.
Northern Data was valued at সর্বোচ্চ 1.b billion at the highest level on the Frankfurt Stock Exchange in February 2021. Since then, it has lost one hundred percent of its market capitalization.
The company was accused last year of misleading investors in an anonymous article on Medium.com, which said Northern Data was increasing its efficiency in “high-performance computing” and reducing its reliance on bitcoin mining. The article argued that Northern Data hosting services seemed so strangely profitable that the company was “cooking books” or that it had “found the most stupid customers in the crypto industry”.
Northern Data at the time denied any wrongdoing. The website says the Medium.com post has since been taken offline because it was found to be “under investigation or in violation of moderate rules”.
In a presentation released on Thursday, Northern Data said the huge gap between the guidelines and the reported numbers was due to the fact that it was “unable to collect revenue with our two main customers” because these transactions “did not lead to the necessary revenue recognition in FY20”.
As Northern Data remains in the process of acquiring previous clients, its transactions with them “do not expect to receive revenue recognition in FY2021,” it said.
This article is a reflection of the fact that Northern Data’s revenue guidelines for 2020 were € 120 million – € 1 million.