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Chris Bryant

A German Bitcoin Sensation Takes a Very Bad Trip

However revolutionary the crypto world may seem, basic accounting and clear communication remain vital

Sparks in a Bitcoin mine.

Sparks in a Bitcoin mine.

Photographer: Andrey Rudakov
Updated on

In the wake of the collapse of Wirecard AG, Germany’s financial regulators were criticized for failing to promptly police the fintech’s financial shenanigans. A humbled BaFin isn’t sitting on its hands anymore.

The regulator has filed a complaint with Frankfurt prosecutors about potentially misleading financial disclosures by another big German technology hope: Northern Data AG, which owns infrastructure for Bitcoin mining and other data-heavy applications. The company’s shares tumbled more than 20% on Friday. It was unable to comment when I reached a representative on Monday. Not a promising sign for a business mulling a Nasdaq listing to increase investor transparency. “We reject the allegations made therein, in particular of market manipulation. We are confident that we will clarify the matter in full cooperation with the authorities,” the company said in a statement on Tuesday