A former senior executive at SandboxAQ has filed a wrongful termination lawsuit packed with allegations so inflammatory that large portions of the complaint were deliberately blacked out by the plaintiff himself.
The lawsuit, submitted in mid December, targets SandboxAQ and its high profile chief executive Jack Hidary. On Friday, the company’s legal team pushed back hard, filing an aggressive response that accuses the former employee of fabricating claims in an effort to pressure the company into a financial settlement.
According to the filing, SandboxAQ’s attorneys describe the lawsuit as a deliberate attempt to misuse the legal system, labeling the plaintiff a habitual liar and arguing that the claims were designed to serve improper and extortionate motives rather than legitimate grievances.
Even with the heavy redactions, the visible sections of the lawsuit raise serious questions. TechCrunch reviewed the available court documents, which outline a dispute that has spilled internal company matters into public view despite the widespread use of private arbitration clauses in Silicon Valley employment contracts. A redacted copy of the complaint is publicly accessible through court records.
The case was brought by Robert Bender, who served as chief of staff to Hidary from August 2024 until July 2025. In his complaint, Bender alleges he was dismissed after flagging what he described as troubling internal behavior. His claims include references to alleged sexual encounters during business travel and accusations that investor facing financial data did not accurately reflect the company’s actual performance.
SandboxAQ has flatly rejected those assertions. Orin Snyder, a prominent partner at Gibson Dunn representing the company, told TechCrunch that the lawsuit is entirely fictional. According to Snyder, SandboxAQ plans to dismantle the accusations in court and demonstrate that the complaint is an opportunistic effort to exploit the judicial process.
What makes the dispute especially notable is SandboxAQ’s position within the tech industry. The company originated as a moonshot initiative inside Alphabet before spinning out as an independent entity in 2022. Hidary, who led the project during its time at Google’s parent company, remains a well known figure in Silicon Valley and serves on the board of the XPRIZE Foundation.
Bender’s lawsuit claims that certain redacted passages describe intimate encounters and physical details involving individuals who are not named defendants in the case. Legal experts note that this approach is unusual, as redactions are typically requested by defendants rather than plaintiffs. While motivations vary, such redactions can sometimes be interpreted as an attempt to shield third parties or signal the existence of additional damaging information.
Among the unredacted allegations, Bender claims that Hidary used company funds and resources to arrange travel and entertainment for women he was involved with personally. An exhibit attached to the complaint references text messages that include mention of escorts.
The lawsuit also accuses Hidary of selling tens of millions of dollars in stock at elevated valuations based on what Bender alleges were misleading revenue figures. According to the filing, Bender claims that internal financial data presented to the board showed revenue levels significantly lower than figures used in presentations to prospective investors.
SandboxAQ’s legal response disputes all of these points. The company asserts that no fraudulent disclosures were made, no corporate assets were misused, and that the former employee manufactured allegations in an attempt to protect himself from the consequences of his own conduct.
Bender, meanwhile, argues that SandboxAQ engaged in a campaign to damage his reputation after his termination. His complaint states that the lawsuit was filed only after what he characterizes as a malicious effort to undermine his credibility within the industry.
Several of the allegations echo reporting published last year by The Information, which examined SandboxAQ’s spending practices and revenue growth. Sources cited by the publication alleged that company resources were used for personal travel and that revenue fell short of projections. Bender references the article in his complaint but denies serving as a source for the report. SandboxAQ contends that he was involved and has been dishonest about his role.
Despite the controversy, SandboxAQ has continued to attract significant investor backing. In April, the company announced it had raised more than $450 million in a Series E funding round involving major investors such as Ray Dalio, BNP Paribas, Google, and Nvidia, according to a company press release. SandboxAQ has also disclosed a $90 million secondary sale and says it has raised a total of $1 billion to date, with a valuation estimated at $5.75 billion by PitchBook.