Gibran Huzaifah, the founder and former chief executive of the collapsed Indonesian agritech unicorn eFishery, has been sentenced to nine years in prison. The Bandung District Court found him guilty of embezzlement and money laundering in a case that has shaken the regional startup ecosystem. This verdict concludes a high-profile legal battle following the exposure of a massive financial scandal at the company.
The Court's Verdict
The court delivered its decision on Wednesday, finding Gibran Huzaifah legally and convincingly proven to have committed the crimes of embezzlement and money laundering. In addition to the nine-year prison term, the panel of judges also imposed a fine of Rp1 billion. The sentence is slightly less than the 10-year term that prosecutors had demanded earlier in April.
Chronology of the Legal Proceedings
The legal proceedings were initiated following a police report concerning alleged fund misappropriation during eFishery's acquisition of software firm DycodeX in March 2024. Gibran was officially detained by national police investigators for the investigation in July 2025. The case proceeded to trial at the Bandung District Court five months later in December 2025, addressing unlawful acts committed over several years.
Prosecutors alleged that Gibran, along with two other former executives, engaged in a series of unlawful acts between 2020 and 2024. They were accused of using their positions and deceptive practices to secure assets and loans for personal benefit, causing over Rp69 billion in losses to eFishery. The prosecution also highlighted that the defendants showed no remorse throughout the trial proceedings.
A Founder's Defense
In an emotional plea before the verdict, Gibran Huzaifah denied any intent for personal enrichment and asked the court not to treat the case as a criminal matter. He argued that any administrative errors were unintentional consequences of managing a rapidly scaling company and that he was prepared to take civil responsibility. He contended that a lengthy prison sentence would be an injustice and set a damaging precedent for Indonesian innovators.
The Fall of a Unicorn
This case is the culmination of the dramatic collapse of eFishery, once a celebrated unicorn with a valuation exceeding $1 billion. The company, which provided automated feeding technology for fish and shrimp farmers, is now cited as one of Southeast Asia's most significant startup failures. The scandal has resulted in estimated investor losses of up to $300 million due to prolonged financial manipulation.
The company's downfall has impacted a roster of world-class investors who had backed its ambitious growth. Prominent names such as SoftBank Group Corp., Temasek Holdings Pte., Peak XV, and Abu Dhabi's 42XFund suffered substantial losses. These losses were attributed to widespread financial statement manipulation that reportedly occurred between 2018 and 2024, eroding investor confidence.
The sentencing of Gibran Huzaifah marks a definitive end to a tumultuous chapter for what was once one of Indonesia's most promising technology companies. The verdict underscores the critical importance of corporate governance and transparency within the fast-paced startup world. This case serves as a stark cautionary tale for founders, investors, and the broader tech industry in the region.