Indian-origin CEO alleges $3 million crypto blackmail against AI startup Giga
Indian-origin entrepreneur Varun Vummadi has alleged that AI startup Giga is facing a $3 million crypto extortion attempt using stolen internal data. The group behind the threat has warned of releasing manipulated and defamatory information if the payment is not made.
New Delhi: Indian-origin entrepreneur Varun Vummadi, co-founder and CEO of San Francisco-based AI-based company Giga, has claimed that his company is being extorted out of $3 million by thieves who stole internal data on the company. Its demand, he said, was in the cryptocurrency, and manipulated information would be publicly released unless the payment is made.
Vummadi provided information about the purported blackmail on X and an image of a threatening mail. He said that a small portion of people got confidential company information and are now seeking to weaponise it by selectively snipping pieces of data and adding what he termed as fabricated and defamatory statements with the aim of ruining the reputation of Giga.
CEO alleges crypto blackmail using stolen data
Vummadi, in his post, stated that the email threatens that failure by Giga to pay would see the release of selected information publicly to create an impression that the company is guilty of misconduct. He alleged that there has already been misinformation disseminated on social media and more is threatened by an anonymous crypto wallet demand.
Vummadi writes that they have already put false and defamatory information on Twitter. He further said that the following will be selective editing of stolen data to forge a fake story about the activities and morals of the company.
Former employee accusations add to controversy
The accusations were made when there were claims in the press by an ex-employee named Jared Steele, who had a temporary job at Giga as a demand generator. Steele claimed that the startup inflated revenue numbers, bribed firms to finalise deals, and had a highly toxic work culture that he described.
On social media, Steele alleged that employees were supposed to work 12-hour shifts on a compulsory basis on a daily basis, there was no work-life balance and salary promises were being withheld. He claimed that he had dropped out of the job after only one day and that it was the worst workplace he had ever had.
Giga denies claims, cites targeted attack
Giga has strongly refuted all the allegations. Vummadi termed the allegations as being wildly false and defamatory and claimed that it was part of an organised move to damage the image of the company. He observed that it caused an uproar shortly after Giga had received $61 million in a Series A round in November 2025.
Vummadi cites this selective editing and misrepresentation of the stolen data to afflict confidence in the company that is at a very critical stage of growth.
Law enforcement notified
Giga issued a formal declaration saying that it has filed the extortion effort with law enforcement officers. The firm claimed that the threatening messages were posted by an anonymous Proton email account, which the company presumes was a clear sign of criminal activity.
This has been extortion, and we have reported the matter to the police, the statement said. In case they persist in their criminal activities, we will pursue other relevant legal measures.
Giga was established in 2023 by IIT Kharagpur alumni Varun Vummadi and Esha Manideep and creates voice-based AI agents in the enterprise. Both founders took great personal risks to develop the startup. Manideep rejected a 150,000 job offer, and Vummadi rejected a Stanford PhD position and a $525K quant trading position.
In the meantime, Giga claims that it is dedicated to collaboration with law enforcement, mending its image, and safeguarding its reputation. The founders insist that they will not succumb to pressure and are ready to react to what they describe as a calculated effort to derail a fast-rising AI company.