Giga has reported an extortion attempt demanding $3 million from the company, according to claims made by its CEO, Varun Vummadi. The entrepreneur stated that a small group of individuals has illegally accessed confidential company information and is threatening to release manipulated data unless their demands are met. Vummadi has denied allegations of misconduct made by former employees, asserting that these claims are false and defamatory.
In a recent post on X, Vummadi revealed that the alleged extortionists had already published misleading information about Giga on social media. He indicated that they are demanding payment in cryptocurrency and provided a screenshot of an email sent by the group that warned of further disclosures if the ransom is not paid.
The company has informed law enforcement and is preparing to take legal action against the individuals involved. Giga's statement highlighted that the emails originated from an anonymous ProtonMail address, characterizing the situation as a serious case of extortion and blackmail. The timing of these threats coincided with increased media attention following Giga’s successful $61 million Series A funding round announced in November 2025.