Fintech Founder Charged for Defrauding Investors Over 'AI' Shopping App
Summary
Fintech founder Albert Saniger faces fraud charges for deceiving investors by falsely claiming his shopping app Nate used AI automation, when it relied on human labor, leading to over $50 million in losses for backers like Coatue and Forerunner Ventures.
Key Points
- Fintech founder Albert Saniger was charged with fraud for claiming his 'AI' shopping app Nate was automated, when it relied heavily on human contractors in the Philippines
- Nate raised over $50 million from investors like Coatue and Forerunner Ventures by claiming it could transact online 'without human intervention'
- The DOJ alleges Nate's actual automation rate was effectively 0%, and it ran out of money in 2023, leaving investors with 'near total' losses