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More than a year after Andrew Tate urged aspiring developers to build the next big artificial intelligence startup for a shot at more than $1 million in prize money, one contestant says the only thing the competition produced was a federal lawsuit.
Anthony Mitchell, a Nevada software developer, has sued Tate and several companies allegedly tied to his online education empire, The Real World (“Money making is a skill,” the site reads. “We will teach you how to master it”), accusing them of turning a splashy AI hackathon into a contest with no winners, no payouts, and no explanation.
Filed in federal court in Nevada, the 219-page complaint (attached below) alleges that Tate and his businesses lured participants with promises of a seven-figure prize pool, detailed judging criteria, and a competition marketed as the “AI Hackathon.” But after the submission deadline passed in February 2025, the lawsuit claims the contest simply… stopped.
According to the complaint, organizers never announced winners, never judged submissions, and never distributed any of the advertised prize money. Yet the hackathon website allegedly remained online for more than a year, continuing to display entrants’ projects beneath promises of more than $1 million in prizes.
Mitchell says he spent roughly 200 hours building an AI-powered cryptocurrency project called “Bangchain,” polishing pitch materials, and integrating Solana blockchain technology before submitting it to the contest. His project eventually appeared as the first-listed entry on the hackathon’s online showcase page — where, according to the lawsuit, it remained long after the competition ended.
Rather than paying contestants, Mitchell alleges the defendants continued using participants’ work as promotional content while the contest languished.
The lawsuit names Tate, New Era Learning LLC, Thrifty Consulting LLC, Legendary Courses Inc., and several unidentified defendants allegedly connected to fundraiser.com. Mitchell accuses them of breach of contract, fraud, unjust enrichment, promissory estoppel, and violating Nevada’s Deceptive Trade Practices Act.
New Era Learning has an F rating on the Better Business Bureau for failing to respond to three complaints, which is mentioned in the lawsuit. The two reviews on the company’s profile describe frustration as users are unable to retreive their funds, despite one being “guaranteed” to be paid out thousands of dollars in a two week time frame.
“New Era holds itself out as a Delaware LLC but may not be registered as a limited liability company in Delaware or in any other jurisdiction,” the site reads. (Delaware is a popular choice for business owners to start their LLCs, as unlike many states, Delaware does not require LLC members or managers to identify themselves by name or list their personal addresses in publicly available formation documents..)
Mitchell’s attorneys argue the hackathon wasn’t a side project but an extension of Tate’s sprawling online business. The complaint alleges Tate, who it identifies as CEO of New Era Learning LLC, personally promoted the contest on X beginning in January 2025, encouraged followers to participate, and later publicly praised Mitchell’s project, calling it “perfect for the average crypto trader.”
The complaint also alleges organizers used the Solana Foundation’s branding without authorization. According to the lawsuit, the foundation publicly disavowed any connection to the event two days before the competition officially launched, but organizers proceeded anyway.
To support its claims, the lawsuit attempts to connect Tate’s various business entities through shared infrastructure, branding, payment systems, and websites, arguing they collectively operated both The Real World platform and the fundraiser.com website that hosted the competition.
Mitchell estimates he suffered more than $75,000 in damages after investing hundreds of hours into the project. The complaint argues that figure exceeds the federal jurisdictional threshold once potential treble damages under Nevada law are considered.
The lawsuit seeks compensatory damages, restitution, treble damages where available, attorneys’ fees, and a jury trial. As of the filing of the complaint, Tate and the other defendants had not responded in court. Tate’s attorney did not immediately respond to a New Times telephoned request for comment.
