{"id":40056,"date":"2025-04-11T14:30:32","date_gmt":"2025-04-11T11:30:32","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=40056"},"modified":"2025-04-11T12:48:49","modified_gmt":"2025-04-11T09:48:49","slug":"nates-ai-shopping-app-was-fake-feds-say-it-used-philippine-workers","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/nates-ai-shopping-app-was-fake-feds-say-it-used-philippine-workers\/","title":{"rendered":"Nate\u2019s AI Shopping App Was Fake: Feds Say It Used Philippine Workers"},"content":{"rendered":"<p class=\"\" data-start=\"2651\" data-end=\"2876\">U.S. authorities have charged <strong data-start=\"2681\" data-end=\"2699\">Albert Saniger<\/strong>, founder of the Nate app, with <strong data-start=\"2731\" data-end=\"2740\">fraud<\/strong>, revealing that the supposed <strong data-start=\"2770\" data-end=\"2799\">AI-powered e-commerce app<\/strong> actually relied on human workers in the Philippines to fulfill transactions.<\/p>\n<p class=\"\" data-start=\"2878\" data-end=\"3167\">Launched in 2020, Nate was marketed as a universal <strong data-start=\"2929\" data-end=\"2949\">AI shopping cart<\/strong>, automating everything from entering shipping details to completing online purchases. However, court documents reveal that transactions were handled manually by hundreds of contractors in a <strong data-start=\"3140\" data-end=\"3166\">Philippine call center<\/strong>.<\/p>\n<p class=\"\" data-start=\"3169\" data-end=\"3404\"><em data-start=\"3169\" data-end=\"3250\">\u201cSaniger exploited the allure of AI to create a false narrative of innovation,\u201d<\/em> stated U.S. Attorney Matthew Podolsky. He emphasized that such fraud not only harms investors but also undermines genuine AI innovation by eroding trust.<\/p>\n<p data-start=\"3169\" data-end=\"3404\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-153236 size-full\" src=\"https:\/\/coinmuhendisi.com\/blog\/wp-content\/uploads\/2025\/04\/nate.jpeg\" alt=\"nate\" width=\"883\" height=\"695\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/nates-ai-shopping-app-was-fake-feds-say-it-used-philippine-workers\/#Millions_Raised_Under_False_Promises\" title=\"Millions Raised Under False Promises\">Millions Raised Under False Promises<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/nates-ai-shopping-app-was-fake-feds-say-it-used-philippine-workers\/#You_Might_Be_Interested_In_Elon_Musk_Talks_About_the_Name_of_a_New_Memecoin\" title=\"You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!\">You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/nates-ai-shopping-app-was-fake-feds-say-it-used-philippine-workers\/#Facing_Up_to_20_Years_in_Prison\" title=\"Facing Up to 20 Years in Prison\">Facing Up to 20 Years in Prison<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"3406\" data-end=\"3446\"><span class=\"ez-toc-section\" id=\"Millions_Raised_Under_False_Promises\"><\/span>Millions Raised Under False Promises<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"3448\" data-end=\"3796\">Saniger allegedly secured <strong data-start=\"3474\" data-end=\"3494\">over $40 million<\/strong> in funding by convincing venture capitalists that the app\u2019s backend was powered by advanced automation. Internally, employees were told to conceal the use of human labor. Though Nate had acquired some third-party AI tech, the app\u2019s <strong data-start=\"3727\" data-end=\"3769\">true automation rate was close to zero<\/strong>, according to authorities.<\/p>\n<hr \/>\n<h4 data-start=\"1444\" data-end=\"1471\"><span class=\"ez-toc-section\" id=\"You_Might_Be_Interested_In_Elon_Musk_Talks_About_the_Name_of_a_New_Memecoin\"><\/span><strong><em>You Might Be Interested In: <a href=\"https:\/\/coinengineer.net\/blog\/elon-musk-talks-about-the-name-of-a-new-memecoin\/\">Elon Musk Talks About the Name of a New Memecoin!<\/a><\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<hr \/>\n<p class=\"\" data-start=\"3798\" data-end=\"3986\">In late 2021, Saniger instructed developers to build <strong data-start=\"3851\" data-end=\"3859\">bots<\/strong> to automate parts of the process during the holiday rush. However, even these efforts were limited in scope and effectiveness.<\/p>\n<h2 data-start=\"3988\" data-end=\"4023\"><span class=\"ez-toc-section\" id=\"Facing_Up_to_20_Years_in_Prison\"><\/span>Facing Up to 20 Years in Prison<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"4025\" data-end=\"4311\">The Department of Justice has charged Saniger with both <strong data-start=\"4081\" data-end=\"4101\">securities fraud<\/strong> and <strong data-start=\"4106\" data-end=\"4120\">wire fraud<\/strong>, each carrying a potential sentence of <strong data-start=\"4160\" data-end=\"4178\">up to 20 years<\/strong>. The SEC\u2019s civil complaint also seeks to bar him from executive roles in similar companies and demands the return of investor funds.<\/p>\n<p class=\"\" data-start=\"4313\" data-end=\"4487\">Nate ceased operations in <strong data-start=\"4339\" data-end=\"4355\">January 2023<\/strong>, following media scrutiny of its actual capabilities. Saniger then <strong data-start=\"4423\" data-end=\"4447\">terminated all staff<\/strong>, effectively shutting down the company.<\/p>\n<hr \/>\n<p data-start=\"4313\" data-end=\"4487\"><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"nofollow noopener\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. authorities have charged Albert Saniger, founder of the Nate app, with fraud, revealing that the supposed AI-powered e-commerce app actually relied on human workers in the Philippines to fulfill transactions. Launched in 2020, Nate was marketed as a universal AI shopping cart, automating everything from entering shipping details to completing online purchases. However, court<\/p>\n","protected":false},"author":28,"featured_media":34916,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[657,2],"tags":[14194,472,14199,14198,14195,14196,14200,974,14201,14197],"class_list":["post-40056","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-en","category-news","tag-ai-fraud","tag-artificial-intelligence","tag-ecommerce-deception","tag-investor-fraud","tag-nate-app","tag-philippine-workers","tag-saniger-case","tag-sec-lawsuit","tag-tech-scandal","tag-us-doj"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Nate\u2019s AI Shopping App Was Fake: Feds Say It Used Philippine Workers - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/nates-ai-shopping-app-was-fake-feds-say-it-used-philippine-workers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nate\u2019s AI Shopping App Was Fake: Feds Say It Used Philippine Workers - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"U.S. authorities have charged Albert Saniger, founder of the Nate app, with fraud, revealing that the supposed AI-powered e-commerce app actually relied on human workers in the Philippines to fulfill transactions. 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