Indian-origin CEO says AI firm Giga is being blackmailed for $3 million in crypto using stolen company data

artificial intelligence

Indian-origin entrepreneur Varun Vummadi, co-founder and CEO of San Francisco-based AI startup Giga, has said his company is facing a serious extortion attempt. In a tweet posted on X, Varun alleged that a small group of people has gained access to confidential company data and is now demanding $3 million in cryptocurrency to keep it private.

To back his claim, Varun also posted a screenshot of the threatening email. According to the tweet, the mail warns that if Giga does not pay up, the group will release data snippets after twisting them out of context, along with what it calls “defamatory allegations”. The email, Varun said, contains manipulated information that is not just false, but also damaging to the company’s reputation.

“They have already posted information on Twitter that is false and defamatory,” Varun wrote, adding that the next threat is to weaponise parts of the stolen data and make them look like proof of wrongdoing unless the payment is transferred to an anonymous crypto wallet.

This public accusation comes amid a parallel storm of claims from former employees. One ex-staffer, Jared Steele, who was hired to lead demand generation at Giga, posted on social media accusing the startup of unethical practices. These claims included inflating revenue numbers, bribing large companies to close deals, and mistreating employees. Jared also described Giga’s work culture as “the most toxic” he had ever seen, alleging 12-hour mandatory shifts every day, no work-life balance, and salary promises that never materialised. He said he quit after just one day on the job.

Giga has strongly denied these accusations. Varun called them “wildly false and defamatory” in his tweet, saying the claims were part of a targeted effort to hurt the company right after it raised $61 million in a Series A funding round in November 2025. He added that the stolen data is being selectively edited to make the company look bad at a time when it should be celebrating growth.

In an official statement, Giga confirmed it has reported the extortion attempt to law enforcement. The company said the threatening emails were sent from an anonymous Proton email account, clearly showing an attempt to extort money using fear and false narratives.

“This is extortion, and we have notified law enforcement,” the statement read. “If they continue with their illegal conduct, we will take further appropriate legal action. Their emails sent from an anonymous Proton email account demonstrate their attempts to extort Giga.”

Giga, founded in 2023 by IIT Kharagpur alumni Varun Vummadi and Esha Manideep, builds voice-based AI agents for businesses. What makes the story even more compelling is the risk both founders took to build it. Esha turned down a $150,000 job offer, and Varun passed on a Stanford PhD seat and a $525,000 quant trading role to go all-in on Giga.

For now, the company is focused on clearing its name, cooperating with authorities, and stopping what it calls a calculated attempt to damage a young, fast-growing startup. The coming weeks will show how this unfolds, but the message from the founders is clear: they’re not backing down.