A US tech founder is facing fraud charges after claims that his company’s artificial intelligence (AI) was actually people working from a call center in the Philippines.
Albert Saniger, the 35-year-old behind a shopping app called nate, is accused of lying to investors about how the app worked.
Saniger raised over $40 million by saying nate used its own AI system to complete online purchases. He told backers that the app could pick the right product size, fill in payment and shipping details, and place orders with just one tap from the user—no human help needed.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
ICO vs IDO vs IEO: Which One’s the Best? (Easily Explained)
The app was launched around 2018 and marketed as a simple way to buy things from any online store. Users were led to believe that smart software handled every step of the checkout process.
In reality, the AI struggled to complete most orders. Instead of fixing the system, nate quietly hired people in the Philippines to do the work. These workers would complete each transaction manually, pretending to be the app’s automation.
Saniger has been charged with securities fraud and wire fraud. Each charge could carry up to 20 years in prison if he is found guilty. The US Securities and Exchange Commission (SEC) has also filed a civil complaint against him.
Acting US Attorney Matthew Podolsky said, “Albert Saniger misled investors by exploiting the promise and allure of AI technology to build a false narrative about innovation that never existed”.
Recently, police in Gwangju, South Korea, uncovered an illegal gambling operation disguised as a cryptocurrency mining office. What did they find? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
