Former CEO of Nate, Albert Saniger, has been charged with fraud. It was revealed that the Nate app did not utilize the claimed AI technologies, leading to investor deception. The information was published by the US Department of Justice.
The Nate app was positioned as a one-click shopping tool based on a neural network. Although Nate acquired an AI algorithm, its integration failed. Despite this, the company continued to attract investment, while order processing was actually done manually by employees in the Philippines. The FBI has opened a case under articles on securities fraud and wire fraud. Saniger faces up to 40 years in prison.
Nate and Saniger are not unique in such schemes. Previously, Amazon was caught in a similar situation, promoting cashierless stores. The system supposedly automatically identified purchases through sensors and cameras, but in reality, thousands of workers from India manually compiled shopping lists. Amazon`s store chain was closed.
Finley Holt