Northern Data NY, LLC v. Rogers

On March 31, 2026, Northern Data NY, LLC filed a landmark lawsuit in the Southern District of New York against its former Vice President of North American Operations, Marcus Rogers. The complaint alleges that Rogers secretly exfiltrated thousands of confidential files containing proprietary algorithms for high-performance computing (HPC) and Bitcoin mining optimization. Rogers allegedly breached strict non-compete and non-disclosure agreements by immediately accepting a C-suite position at Core Scientific, a direct competitor. Northern Data claims the stolen trade secrets are valued at over $200 million and seeks emergency injunctive relief alongside substantial monetary damages.

The court granted a temporary restraining order (TRO) freezing Rogers's employment at Core Scientific pending expedited forensic discovery, though a final verdict on the permanent injunction remains pending.

The primary legal dispute centers on whether the HPC algorithms constitute legally protectable trade secrets under the Defend Trade Secrets Act and New York state law, or simply generalized skills. A secondary focus questions the enforceability of restrictive covenants against employees transitioning within the highly specialized crypto infrastructure sector.

The case sent shockwaves through the digital asset mining industry, prompting many firms to immediately overhaul their executive offboarding procedures and review the scope of their restrictive covenants to balance workforce mobility with corporate security.