Overview

• Albert Saniger, founder and former CEO of Nate, has been charged with securities and wire fraud by the U.S. Department of Justice.
• Nate falsely marketed itself as an AI-powered shopping app capable of autonomous one-tap e-commerce transactions, but it relied on human contractors in the Philippines to complete purchases manually.
• The app raised over $50 million from prominent investors, including Coatue and Forerunner Ventures, based on claims of groundbreaking AI automation.
• The Department of Justice revealed that Nate’s automation rate was effectively zero, with no genuine AI functionality supporting its operations.
• Acting U.S. Attorney Matthew Podolsky emphasized that such deception undermines trust in legitimate startups and hinders progress in AI innovation.