VideoVerse founder Vinayak Shrivastav faces fraud allegations following collapsed $250 million acquisition
Creditors including Lingotto and Bluestone Capital are suing for restitution as investigations reveal discrepancies in VideoVerse’s representations and missing millions from the startup’s AI clipping business.
VideoVerse co-founder Vinayak Shrivastav is the subject of multiple legal actions in Delaware Chancery Court following the collapse of the company’s $250 million acquisition by Minute Media. Creditors and investors, including Lingotto and Bluestone Capital, are pursuing restitution, alleging that Shrivastav utilised forged signatures and fabricated documents to secure loans and extract funds from the startup.
Minute Media terminated its contract with VideoVerse in May 2026, citing significant discrepancies in the company’s representations. The international sports publisher, which had intended to scale VideoVerse’s AI-powered clipping software into the US market, stated it continued to operate as a separate legal entity from VideoVerse even after the acquisition closed.
The legal disputes centre on allegations that Shrivastav, who was removed as CEO in April 2026, used fraudulent merger documents to induce shareholders to approve the deal. Creditors claim he accumulated cash-generating debts and side deals while the pretense of a successful business became untenable, leaving investors waiting for their share of the acquisition windfall.
Lingotto, which provided a $55 million structured loan in October 2025, alleges that critical documents supporting the financing were forged. The investment firm claims that statements from Minute Media’s CEO and screenshots of internal bank balances were fabricated to secure the loan. Lingotto reports that a $4 million payment due in March 31 failed to arrive, prompting calls for the full amount.
Former COO Sabya Das has filed a separate complaint alleging that Shrivastav forged his signature on loan and share-repurchase agreements to extract tens of millions of dollars. Das’s filing also involves secondary sales and a confidential high-interest loan, adding to the web of overlapping court claims as parties seek to determine the distribution of missing funds.
Shrivastav did not respond to multiple attempts to contact him for comment. His most recent listed address, appearing in Das’s complaint, is located on the Palm Jumeirah islands in Dubai. The precise whereabouts and current financial status of the founder remain unclear as the legal proceedings continue.
