Builder.AI Bankruptcy Reveals £74M Tab with Mossad‑Linked Spy Firm and Top Crisis Lawyers

Builder AI's financial troubles have taken a dramatic turn as court documents unearthed a staggering $100 million (£74.01 million) debt owed to a spy firm reportedly linked with Mossad, alongside substantial fees due to prominent crisis management lawyers.

This revelation casts a new light on the company's downfall and raises significant questions about its operations and expenditures.

Builder.ai went bust, owing money to an Israeli private intelligence outfit, a well-known crisis communications professional, and one of the world's most intimidating legal practices, the London tech group's US bankruptcy filings show.

Unveiling the Unprecedented Debts

The Microsoft-backed start-up's main US holding company declared insolvency in Delaware on Monday, exposing outstanding bills and obligations to numerous creditors, from key customers to big tech firms like Amazon and Microsoft.

Among the creditors were Tel Aviv-based private intelligence firm Shibumi Strategy, leading US litigation firm Quinn Emanuel, and Sitrick Group, a Los Angeles public relations company noted for its work in 'crisis communications.'

The three firms were all brought in after a Financial Times report emerged last year, which indicated Builder.ai's co-founders, including chief executive Sachin Dev Duggal, faced criminal investigations in India, according to individuals with direct insight.

Behind the Investigations and Denials

The FT also detailed other legal conflicts Duggal, Builder.ai's self-styled 'chief wizard', encountered throughout his professional life. Duggal has, however, refuted any misconduct concerning these affairs, with his lawyers consistently asserting his status as merely a witness in the Indian proceedings.

Builder.ai went into administration last month following an internal inquiry that unearthed signs of potentially fabricated sales. This resulted in revenues reported under Duggal's leadership being cut to merely a quarter of earlier projections.

At the time, Builder.ai chose not to comment, stating its focus was on 'an orderly wind-down and preserving value for employees.' Last year, a letter from Quinn Emanuel, representing Builder.ai and Duggal, reached the FT, contending that the paper's reporting on the tech company's customer dealings may have breached confidentiality.

This US litigation expert is a top choice for major corporations and notable figures caught up in legal battles. Its partners' business cards and emails frequently display the slogan: 'The most feared law firm in the world.'

A PR Heavyweight Steps In

Mike Sitrick, who founded the public relations firm Sitrick and Company bearing his name, also contacted the FT last year for Builder.ai, questioning the newspaper's reporting methods. He remains a highly sought-after crisis communications expert.

Shibumi owes its establishment to Israeli corporate espionage specialists Ori Gur-Ari and Saphia Fenton, the latter of whom formerly served with Israel's intelligence agency, Mossad. Shibumi openly promotes deploying ex-spies, sourced from national intelligence agencies, to tackle complex issues for its extremely wealthy clientele.

Shibumi additionally featured in a prominent spying scandal in 2022 after the Financial Times exposed how the contentious financier Lars Windhorst had engaged the Israeli firm to target a German football chief.

Contradictions and Explanations

Even though Windhorst and Shibumi initially denied knowledge of the supposed smear campaign at Hertha Berlin, a club inquiry uncovered that campaign invoices came from a bank account linked to Windhorst.

During an interview last year, the German financier informed the FT that he 'had a legitimate reason to ask professionals to help me investigate' Hertha Berlin's former chair Werner Gegenbauer, yet expressed his regret over the events.

The Road to Liquidation

Having informed employees last month of its impending insolvency, Builder.ai's US holding company sought Chapter 7 bankruptcy in Delaware on Monday to officially liquidate its remaining assets.

The US bankruptcy court's notable transparency allowed the company to reveal it had over 200 creditors. Builder.ai's court filings indicated its liabilities totalled $100 million (£73.88 million), while its assets amounted to under $10 million (£7.39 million).

The bankruptcy filings also name T&M USA, an American corporate intelligence firm, as a creditor. T&M's website indicates it helps 'clients in overcoming legal, reputational, and business challenges to emerge safer and more resilient.'

A former senior Builder.ai employee commented that 'collaborating with international professional advisers forms standard practice for a prosperous billion-dollar technology company operating across regions'.