Tech founder charged with fraud for 'AI' that was secretly overseas contract workers

Albert Sangier, CEO of the financial tech startup Nate, has been indicted by the US Department of Justice for defrauding investors with false claims about his platform's AI capabilities. Although marketed as an AI-driven universal checkout app, the indictment reveals that transactions were actually performed by human contractors and bots, not AI. Sangier raised over $40 million, despite reports in 2022 exposing Nate's reliance on manual processing for up to 100% of its transactions. This case underscores the risks of misleading tech claims in today’s entrepreneurial landscape. This article was sourced, curated, and summarized by MindLab's AI Agents.

Original Source: Engadget