Michaela
Albert Saniger, the former CEO of fintech startup Nate, Inc., has been indicted by the U.S. Attorney’s Office for the Southern District of New York for allegedly misleading investors about the company’s artificial intelligence (AI) capabilities.
According to a press release from the U.S. Attorney’s Office for the Southern District of New York, Saniger is accused of orchestrating a scheme to defraud current and potential investors by providing false and misleading information about Nate’s proprietary AI technology and the company’s operational functionality. The former CEO is accused of securing over $40 million in funding from various investors.
“Saniger allegedly abused the integrity associated with his former position as the CEO to perpetuate a scheme filled with smoke and mirrors. The FBI will continue to investigate any business owner who withholds material information to encourage additional investments,” FBI Assistant Director in Charge Christopher G. Raia stated.
Launched in 2018, Nate positioned itself as an innovative force in e-commerce. The company introduced the Nate app, designed to streamline online shopping by acting as a universal checkout tool. Marketed as a way for users to bypass the traditional multi-step purchase process, the app promised a seamless “one-tap” buying experience.
With the help of artificial intelligence, it claimed to handle everything from choosing product specifications to filling in payment and shipping details—all without user intervention.
During the due diligence process, Saniger consistently assured investors that, aside from rare “edge cases” where the AI encountered issues, the Nate app was fully automated, relying solely on AI to carry out purchases.
Contrary to Saniger’s claims, the Department of Justice (DOJ) for the Southern District of New York alleges that Nate’s operations were far from fully automated. Instead, the company relied on hundreds of human contractors based in a call center in the Philippines to manually process and complete the transactions.
Furthermore, Saniger faces charges of securities fraud and wire fraud, each carrying a potential maximum sentence of 20 years in prison.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
