Builder.ai, an AI-powered app development startup, has reportedly been involved in a financial scandal with VerSe Innovation, the parent company of Dailyhunt. Between 2021 and 2024, the two companies allegedly exchanged fake invoices in a round-tripping scam designed to inflate revenue figures for investors. The scheme came to light after Builder.ai announced bankruptcy in May 2025, following the seizure of $37 million by creditor Viola Credit. A Deloitte audit of VerSe Innovation highlighted major weaknesses in its internal financial controls but did not fundamentally alter its financial statements. Despite denials from VerSe’s cofounder, authorities are scrutinizing both companies, and Builder.ai faces layoffs and a US government subpoena as it grapples with insolvency and allegations that it overstated revenue projections by 300%.
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