Nate Founder Indicted for Fraud Over False AI Claims

Albert Saniger faces charges for misrepresenting his shopping app’s automation capabilities, which relied entirely on human labor instead of AI.

Albert Saniger, founder and former CEO of Nate, has been charged with securities and wire fraud by the U.S. Department of Justice.
The Nate app, which raised over $50 million, was marketed as an AI-driven universal shopping solution but secretly relied on human workers in the Philippines to process transactions.
The app’s actual automation rate was effectively zero, despite claims of AI-driven functionality that misled investors and customers.
Saniger faces up to 40 years in prison if convicted, with each fraud charge carrying a maximum sentence of 20 years.
The case highlights growing concerns over tech startups overstating AI capabilities to attract funding, prompting calls for stricter oversight and transparency.