Higgsfield AI faces scam allegations and user complaints

Not long after achieving the status of Kazakhstan’s first unicorn with a valuation of $1.3 billion, Higgsfield AI has found itself at the center of a major scandal. The company’s official Twitter account has been blocked, and a large-scale investigation circulating within the IT community accuses the startup of operating a deceptive business model.

A document titled «Higgsfield AI Scam» was published on GitHub, citing hundreds of user complaints that question the company’s business ethics.

According to Forbes, the most serious allegations involve direct financial losses. According to the investigation, Higgsfield aggressively promoted «unlimited» data plans. After users paid for subscriptions, many reported that their accounts were blocked by security systems without explanation. Others said processing speeds dropped significantly, forcing them to purchase additional credits.

The company attributed some of the slowdowns to increased bot activity, which consumed computing resources and affected user performance. It also stated that it had refunded $1.35 million to affected users.

Investigators also reported the use of so-called «dark patterns» in Higgsfield’s interface. Thus, payments were allegedly charged instantly, while the unsubscribe option was difficult to find or did not function properly.

Additionally, the company is accused of purchasing thousands of fake reviews on Trustpilot to offset negative feedback.

In early 2025, Higgsfield launched the Higgsfield Earn platform, allowing creators to earn money based on the popularity of their videos. The program initially attracted around 10,000 creators who submitted approximately 50,000 videos within three weeks.

However, many participants reported that promised payouts never arrived. Funds were reportedly stuck in the system, videos disappeared, and user accounts were blocked without explanation once the content gained traction.

Higgsfield stated that 90% of payments were successfully processed and said the company was combating fraudulent activity among some participants.

Higgsfield distributed pre-made promotional content to a broad group of professionals, Forbes reported. These materials allegedly featured well-known characters such as Shrek, Mickey Mouse and Moana making racist or obscene jokes.

The company also reportedly used deepfake technology involving public figures without consent.

Higgsfield co-founder Mahi De Silva confirmed that the videos were created by both internal marketers and third-party contractors. He acknowledged that distributing such materials was a mistake and described the company’s promotional strategy as intentionally provocative:

«We fully admit that we push the envelope. We learn from what works on platforms like X, and very explicitly, it’s more controversial content that gets attention,» De Silva said.

The approach has drawn criticism within the industry. Film director Dustin Thornton, who received the materials, described Higgsfield’s marketing as «ruthless,» saying it lacked moral boundaries.

CEO Alex Mashrabov acknowledged the crisis, citing it as a case of growing pains.

«We acknowledge that our internal processes and external communications haven’t always kept pace with our core values, and we have made mistakes,» he wrote on X.

He cited recent figures, noting that $800,000 had been paid out through the Higgsfield Earn program to more than 10,000 creators over the past three weeks, and that $3 million in free credits had been issued to users.

The scandal comes at a peak financial moment for the company. Just days earlier, Higgsfield announced it had raised $130 million in new investment.

The startup plans to use the funds to expand corporate sales, pursue international growth, and invest in research and development. Higgsfield also plans to increase its workforce from 70 to 300 employees by the end of the year.