I agree. But using the "your data is secure" analogy, BuilderAI never actually told customers that development was done using AI, that's something people made up. If you look at their website (builder.ai) they explain that their virtual assistant "Natasha" assigns a developer (I assume from India). That part doesn’t sound like fraud to me, and it's the part everyone seems to be focusing on.
The company went into insolvency because the CEO and CFO were misleading investors by significantly inflating sales figures through questionable financial practices. According to the Financial Times, the Indian founders and accountants reportedly engaged in round-tripping with VerSe Innovation. That raised red flags for investors, regulators, and prosecutors, and led to bankruptcy proceedings.
The company went into insolvency because the CEO and CFO were misleading investors by significantly inflating sales figures through questionable financial practices. According to the Financial Times, the Indian founders and accountants reportedly engaged in round-tripping with VerSe Innovation. That raised red flags for investors, regulators, and prosecutors, and led to bankruptcy proceedings.