• Giga CEO Varun Vummadi alleges $3M crypto extortion, claiming individuals are threatening to release manipulated company data and false allegations.
• Former employees publicly raised concerns over toxic work culture, long hours, and alleged unethical practices, which Vummadi strongly denies.
• Giga continues operations post $61M Series A, asserting commitment to transparency and legal action while focusing on AI solutions for businesses.

Varun Vummadi, the Indian-origin co-founder and CEO of San Francisco-based AI startup Giga, has claimed that his company is being targeted by an extortion scheme demanding $3 million in cryptocurrency. In a post on X, Vummadi said that a small group of individuals had obtained confidential company information and was threatening to release manipulated data and false allegations unless the ransom was paid. He shared a screenshot of the email, which he described as containing 'wildly false and defamatory allegations'.

“They have already posted information on Twitter that is false and defamatory, and now they are threatening to take snippets of this data, manipulate it out of context, and release it to the public with wildly false and defamatory allegations unless we wire $3M to an anonymous crypto account”, Vummadi wrote.

The claims come amid public accusations from former employees, including Jared Steele, who have alleged unethical practices at Giga. Steele, who was hired to lead demand generation, described the work environment as the 'most toxic' he had experienced. He cited long 12-hour shifts, a lack of work-life balance, and promised compensation that did not materialise, and he resigned after a single day. Other former employees have raised concerns about alleged falsification of revenue numbers, bribing Fortune 500 clients, and mistreatment of staff.

Vummadi has strongly denied all allegations, calling them 'wildly false and defamatory', and emphasised that the data in question was being taken out of context to harm the company. He noted that the alleged extortion attempt coincides with Giga’s recent successful $61 million Series A funding round in November 2025.

“This is extortion, and we have notified law enforcement. 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”, the company said in a statement, confirming that authorities have been informed.

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Founded in 2023 by Vummadi and fellow IIT Kharagpur alumnus Esha Manideep, Giga specialises in building voice-based AI agents for businesses. Both founders reportedly turned down lucrative career opportunities to focus on the startup. Vummadi chose Giga over a Stanford PhD and a $525,000 quant trader position, while Manideep declined a $150,000 job offer.

Giga’s rapid growth and high-profile funding have placed it on the radar of the tech community, but the extortion claims and public accusations from former employees have drawn significant attention to the startup’s internal operations. Vummadi has reiterated the company’s commitment to legal recourse and maintaining transparency with investors, employees, and the broader technology ecosystem.

As the investigation unfolds, the startup continues its operations in San Francisco, with leadership asserting that the company remains focused on developing AI solutions for business applications while addressing the alleged threats.

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