Quick summary: An Indonesian court has sentenced the co-founder of agritech startup eFishery to 9 years in prison following a massive financial scandal where reported revenues were overstated by nearly US$600 million to secure global investment. This landmark ruling highlights a critical shift in public policy and regulatory oversight within Southeast Asia as authorities move to hold technology leaders criminally accountable for systemic fraud and money laundering. The collapse of the former unicorn serves as a stark warning for healthcare practice and broader industry sectors regarding the necessity of rigorous financial controls to maintain market stability and protect the economic well being of the region.
An Indonesian court has sentenced Gibran Huzaifah, co-founder and former chief executive of agritech startup eFishery, to nine years in prison for embezzlement and money laundering.
The verdict was delivered on Wednesday, 29th April, at the Bandung District Court, concluding one of Indonesia’s most high-profile fraud cases involving a once-celebrated technology company.
Judges found the 36-year-old entrepreneur guilty of orchestrating financial manipulation at Multidaya Teknologi Nusantara, the legal entity behind eFishery. The court also ordered him to pay a fine of 1 billion rupiah, equivalent to about S$74,000, or roughly £42,000.
The case centred on allegations that eFishery significantly overstated its revenues and profits to secure funding.
An internal probe revealed major discrepancies. From January – September 2024, the company reported US$752 million in revenue and a profit of US$16 million to investors. In reality, it recorded only US$157 million in revenue and a loss of US$35.4 million during that period.
The scandal is estimated to have caused investor losses of around US$300 million.
Police began investigating in 2024 after receiving complaints from alleged victims. Gibran Huzaifah was arrested in August 2025.
eFishery had positioned itself as a disruptive force in aquaculture by offering fish and shrimp farmers an online platform for feed, financing, and market access. It was once valued at US$1.4 billion and attracted investment from major global funds, including SoftBank, Temasek Holdings, Peak XV Partners, and 42XFund.
Following the revelations in late 2024, Gibran Huzaifah was suspended. The company laid off most employees, dismissed several senior figures, and appointed a consulting firm to take over management.
The Bandung District Court also sentenced Angga Hadrian Raditya, former vice-president of corporate finance and investor relations, to nine years in prison.
Andri Yadi, the startup’s former vice-president overseeing artificial intelligence, Internet of Things, and culti-financing, received a seven-year sentence.
The charges were brought under Article 374 of the Criminal Code on embezzlement in office and Article 3 of Indonesia’s anti-money laundering law. Prosecutors had sought a 10 year sentence for Gibran Huzaifah.
After the verdict, attended by family members, Gibran Huzaifah said the ruling did not reflect what had been presented during earlier hearings. He added that he hoped justice would ultimately prevail.
“My message to young entrepreneurs is to be more cautious. For those who don’t have strong backing or support, it’s better to think things through carefully before making decisions,” he said.
One of his lawyers said the defence team is considering an appeal to the Supreme Court of Indonesia. The court has given them a week to file it.
In an earlier interview with Bloomberg, Gibran Huzaifah admitted to manipulating eFishery’s financial statements but denied stealing any money. During a plea hearing, he delivered an emotional defence.
“If, in leading a company scaling and evolving so rapidly, I am accused of making administrative errors, I am ready to be held accountable civilly,” he said. “Sentencing me to 10 years in prison for a crime where the intent, the act, and the personal flow of funds were never proven is an injustice that will destroy the precedent for any child of the nation who wants to innovate.”
“Do not rob me of 10 productive years that I could use to once again contribute to the Indonesian nation,” he said.
The case has rattled investor confidence in Indonesia’s technology sector and prompted closer scrutiny of due diligence and regulatory oversight in Southeast Asia’s venture capital markets.
It also marks a rare instance of a prominent technology founder in the region facing criminal charges of this nature.
eFishery’s rapid rise and subsequent collapse have highlighted broader challenges in the startup ecosystem, particularly when high-growth ambitions outpace financial controls. The company had been seen as a pioneer in applying technology to traditional aquaculture industries.
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