Rp 25 Trillion Mega Scandal Exposed to the Public: Here's How It Worked

Jakarta, CNBC Indonesia - US authorities have exposed an alleged mega fraud scandal involving iLearning Engines, a new technology company that rapidly achieved a market capitalisation of US$1.5 billion (approximately Rp 25 trillion). The US Department of Justice (DoJ) accuses the company of falsifying nearly all its customer relationships and revenues for years to attract investor funds amid the global AI euphoria. In the official indictment, founder and CEO of iLearning Engines Puthugramam “Harish” Chidambaran and CFO Sayyed Farhan Ali “Farhan” Naqvi are named as the main actors in the ongoing financial crime scheme. The two are charged with various offences, including securities fraud and wire fraud. US authorities assess that the two executives rode the AI hype to create an image of the company as a fast-growing AI startup. However, most of the customers claimed by the company and the reported revenues are alleged to be fabrications. In its statement, the DoJ states that the defendants exploited investor enthusiasm for AI by presenting promising financial projections built on unreal data. Even the customers and company revenues are described as the most “artificial” part of the business narrative. Citing Futurism, the scale of the alleged fraud is considered large. In 2023, the company reported revenues of US$421 million from AI licences to corporate customers. However, local authorities found that these figures stemmed from a network of fictitious contracts with non-existent customers, some worth tens of millions of dollars per year. The two executives are also alleged to have reaped huge profits from this scheme. Chidambaran is said to have received more than US$500 million in shares, plus a salary of around US$700,000 in 2023-2024 and restricted stock units worth US$12.5 million. Chidambaran has been arrested in Maryland, while Naqvi was apprehended in California. This case is one of the largest alleged frauds exploiting the AI trend in recent years. This phenomenon aligns with the increasing AI-based crimes. The latest FBI report notes more than 22,000 complaints related to AI fraud throughout 2025, with total losses reaching US$900 million, up about 33% from the previous year.