Builder.ai, DailyHunt parent VerSe faked revenue from sham deals as part of ‘round-tripping’: Report

A recent report has surfaced accusing Builder.ai and VerSe, the parent company of DailyHunt, of inflating their revenues through alleged sham transactions. Builder.ai is said to have recorded approximately $60 million in revenue over four years from VerSe, purportedly for services like app development. However, these deals are now under scrutiny for being part of a "round-tripping" scheme, where money is cycled between companies to artificially boost financial statements. The report suggests that such financial practices could mislead investors and stakeholders by presenting a healthier financial outlook than what truly exists. Round-tripping, often involving fictitious deals or exaggerated service agreements, allows companies to create an illusion of substantial business activity. This can lead to inflated valuations, impacting investment decisions and market perceptions. Both companies have yet to comment on the allegations, leaving many questions unanswered regarding the legitimacy of their reported earnings. The implications of these findings could extend beyond Builder.ai and VerSe, potentially prompting regulatory reviews and a closer examination of financial practices within the tech industry. As the situation unfolds, stakeholders are watching closely, anticipating possible legal or financial repercussions. The tech sector, already under scrutiny for transparency issues, may face increased pressure to ensure more stringent financial reporting standards and ethical business practices.

— Authored by Next24 Live