San Francisco-based AI startup Giga, led by Indian-origin CEO Varun Vummadi, says it is being blackmailed by an unknown group. The company claims that the group has stolen confidential data and is demanding $3 million in cryptocurrency, threatening to release false and damaging information if the payment is not made.
Vummadi shared a screenshot of the email sent by the group, which included instructions on paying in Monero, a privacy-focused cryptocurrency. The group allegedly warned that they could cause serious damage by publishing manipulated company data.
This is not the first warning. In mid-December, the same group reportedly sent another email threatening to release a large amount of company data, calling it a “70 GB destruction stack” and claiming it could have a “nuclear-level impact.”
The extortion news comes shortly after Giga raised $61 million in Series A funding. Founded in 2023 by Vummadi and IIT Kharagpur alumna Esha Manideep, Giga develops voice-based AI tools for enterprises and is considered a fast-growing player in the AI sector.
In addition, a former employee, Jared Steele, has posted allegations online claiming inflated revenue numbers, misleading job titles, low pay, and toxic work culture. Giga has denied these claims, calling them false and defamatory.
The company says it has reported the blackmail attempt to law enforcement and is ready to take legal action. Giga maintains that its products and operations are not affected and is focused on protecting its reputation while investigating the security breach.
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