Hundred-Billion Scam Exposed: Google Debunks AI Firm Whose CEO’s Resume and $3B Funding Were Fake, Trapping 1,500 People

# Infinite Reality: The Billion-Dollar AI Metaverse Mystery

## Definition of a "Financial Blow-Up"

Legal and financial experts define a **financial blow-up** as actions that cause substantial investor losses through:

- **Concealment** of true operational conditions  
- **Falsification** of financial data  
- **Fraud** or deceptive practices  

![image](https://blog.aitoearn.ai/content/images/2025/11/img_001-713.jpg)

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## From Obscurity to Multi-Billion Dollar Valuation

In early 2025, tech start-up **Infinite Reality** shocked the market with two announcements:

1. Claimed to secure **USD 3 billion** from an unnamed backer  
2. After an all-stock acquisition, reported a **valuation spike to USD 15.5 billion**

CEO **John Acunto** told ~100 shareholders:  
> “It’s all set. You’ve built a USD 12 billion company!”

Chief Commercial Officer **Amish Shah** set a goal: **USD 50–100 billion market cap in 2025**.

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## Company Origins & Leadership

### Founding and Background
- **Founded:** 2020  
- **Focus:** Enterprise-level metaverse solutions — virtual meetings, digital asset trading
- **CEO John Acunto:** Experience with IBM, Apple, eBay, Amazon, Facebook, and multiple ventures (*display*, *212Db*, *Outernet*)  
- **Co-founder Amish Shah:** Oversees dev, partnerships, capital ops

![image](https://blog.aitoearn.ai/content/images/2025/11/img_003-627.jpg)  
![image](https://blog.aitoearn.ai/content/images/2025/11/img_004-598.jpg)  

### Technology
- Proprietary **iR Engine** — integrates AI & spatial web (3D Web) to build and manage virtual worlds  
- GitHub: [https://github.com/ir-engine](https://github.com/ir-engine)

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## Notable Developments

- **May 2025:** Name change to **Napster Corporation** to align brand
- Napster history: iconic 1990s music-sharing platform, collapsed due to copyright lawsuits

### Rapid Expansion via Financing & M&A
- **Jul 2024:** $350M funding + acquisition of **Landvault** (digital twin tech), valuation up to $5.1B  
- Other acquisitions: *Stakes* (social sports), **Touchcast** ($500M) — AI-generated video mentors

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## Valuation Concerns

- 2024 revenue: **$75M** (up from $50M in 2023)  
- Valuation: **200× revenue** — far above Anthropic (44×) & OpenAI (24×)
- Revenue mostly from **>10 all-stock acquisitions since 2022**

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## Questionable Claims & Partnerships

### Google "Partnership"
- Acunto claimed a **5-year deal with Google** to promote AI *Gemini*  
- Google: Infinite Reality is simply a **Google Cloud customer**

### $3 Billion Anonymous Investor
![image](https://blog.aitoearn.ai/content/images/2025/11/img_006-496.jpg)  
- PitchBook: Large round would rival industry giants  
- Authenticity in doubt

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## CEO Credentials Under Scrutiny
- SEC filing claimed **PhD (University of Florida)** & **Master’s (Harvard)** — neither institution confirmed
- Acunto: Called it "clerical errors," refused to disclose actual schools

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## Funding Realities: Collapse of Mega-Round

- Nov 20, 2025: Napster revealed **$3.36B investment** likely never to be received
- Result: Cancelled stock issuances, adjusted ownership percentages
- Described themselves as **"victims of misconduct"**, cited **law enforcement cooperation**

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## Broken Promises: Share Buybacks
- Fourth failed buyback since 2022  
- Employees kept waiting for >1 year for payouts

**SEC & DOJ Investigations**  
- SEC: Reviewing earlier $1.85B reverse merger plan  
- DOJ: Focused on investors and funds flow, Napster not currently a target

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## Internal Turmoil
- Jul 2025: Layoff of ~100 developers (~⅓ of staff)  
- Sep 2025: CLO Jennifer Pepin & CFO Brian Effrain left  
- Cova Capital connection — earlier FINRA fine for poor due diligence

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## Potential Legal Risks
Industry analysts warn that knowingly pursuing unrealistic funding rounds and misrepresenting facts could lead to **securities fraud charges**.

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## Market Context: Metaverse Funding Decline

- Meta invested >$50B in its "metaverse" since 2020 — poor user adoption (Horizon Worlds <200k MAUs in 2022)
- PitchBook: Metaverse funding dropped from $5.6B (2022) to $1.4B (2024)

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## Industry Reaction
- **Herman Narula** (Improbable): Never encountered Infinite Reality professionally  
- **Yat Siu** (Animoca Brands): No industry buzz around the investment

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![image](https://blog.aitoearn.ai/content/images/2025/11/img_007-464.jpg)

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- [Xiaomi robotics hire from Tesla Optimus](https://mp.weixin.qq.com/s?__biz=MzU1NDA4NjU2MA==&mid=2247649639&idx=1&sn=bd438d162078062887036650100821ff&scene=21#wechat_redirect)
- [AI chips — Google snatches Meta order](https://mp.weixin.qq.com/s?__biz=MzU1NDA4NjU2MA==&mid=2247649613&idx=1&sn=5eb74fe63fa97e439efe0180346edc4e&scene=21#wechat_redirect)
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- [AI Weekly — Various industry incidents](https://mp.weixin.qq.com/s?__biz=MzU1NDA4NjU2MA==&mid=2247649452&idx=1&sn=0bb6284567786cf3bae76f17ab2fc795&scene=21#wechat_redirect)

![image](https://blog.aitoearn.ai/content/images/2025/11/img_008-431.jpg)

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## Statement
This article was compiled by **AI Frontline** and does not represent the platform’s views.  
Reproduction without permission is prohibited.

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