The Castle, which launches a fashion startup, whose board of directors has accused its founder, Christine Hansk of financial mismanagement, a partner with his partner and is facing suppliers about further allegations of missing payments and fraud.
As if First reported by Axis And by a suit that is seen by the Tech Crunch, the castle is being prosecuted by P180, a vehicle in which it began to invest in companies that uses Castle Technology, and a costume company, who is never violated by the Expato, never violated the company’s copyright.
A representative cestal did not immediately respond to the request for a tech cranch opinion.
P180 suits It has been alleged, “There was nothing true about the castle.” The legislature claims that the Castle tried to hide its income and financial stability details from the P180. “After that, he encouraged the P180 to get more than one loan with fraud, other than other things, that the P180 would obtain viable assets, which the P180 finally did,” added that the Castle also tried to force them to integrate the two.
The case also states that since the P180 believes it has been misled, its “investors have taken full control of the board,” the case is underway. “P180 has lost more than 58 million Million and wants to recover these income, leave the contract, and eliminate corporate relations between himself and the cestal.”
Meanwhile, the Explor is also being tried. These It has been charged that the Costal violated The agreement reached by not paying a fine after reaching a settlement for violation of the alleged publication.
And the ax is also Reporting on rumors of a potential case of class action Against an investment firm that brought a costume to investors, though he did not report the investor’s name. Axisos first reported a month ago about the financial problems of the cestal. The company’s founder Hanska resigned from the board and withdrew his role as CEO when the company said it was investigating the allegations of financial mismanagement.
The company is looking for bankruptcy and is receiving 7 2.7 million financing to assist in the process. According to Pitch Bok estimates, the Costal collected more than $ 530 million in total, the last round was increased to $ 43 million in 2019.
In April, the board confirmed to the Tech Crunch that its financial situation was so serious at the time that it had to reduce the employees. If the whole $ 530 million ends, it will be the largest startup fraud case in recent history. In comparison, student loan application began, Frank was purchased by JP Morgan for $ 175 million. Frank’s founder, Charlie Javis, was convicted last month.
Tech Crunch spoke to two former employees who said they were not surprised to hear that the company had financial problems, though they did not observe any of the alleged fraud.
A former employee, who asked to be anonymous, does not remember the company that has updated about its financial health or how well it is doing. The employee told the Tech Crunch, “I think everyone laughed at him and it was, ‘Oh, we probably don’t make any money.”
When demanding a response to the allegations of fraud was demanded, the man said, “I don’t think anyone has expected it.”