Fintech founder charged with fraud; AI app found to be humans in the Philippines
a year ago
- #AI
- #fraud
- #startups
- Albert Saniger, founder and former CEO of Nate, charged with defrauding investors.
- Nate raised over $50 million, including a $38 million Series A in 2021.
- Nate claimed AI-powered universal checkout but relied on human contractors in the Philippines.
- DOJ alleges Nate's automation rate was effectively 0%, contradicting claims of AI-driven transactions.
- Nate's practices were exposed in a 2022 investigation by The Information.
- Nate ran out of money and sold assets in 2023, leaving investors with near-total losses.
- Saniger is now a managing partner at Buttercore Partners, which did not comment.
- Other startups, like an AI drive-through software and legal tech unicorn EvenUp, also allegedly exaggerated AI capabilities.