Christine Hunsicker, founder and former CEO of CaaStle, a fashion tech company, is under investigation for financial misconduct in what is being considered "one of the biggest startup frauds ever."
On Monday, Axios obtained a letter from CaaStle's board of directors to investors, informing them that Hunsicker had been providing some investors with "misstated financial statements and falsified audit opinions, as well as capitalization information that understated the number of company shares outstanding."
The letter also states Hunsicker resigned before all of CaaStle's employees were furloughed for two weeks as the company appeared to be nearly broke.
More than $530 million in venture capital was reportedly raised by CaaStle.
In 2011, Hunsicker launched Gwynnie Bee, a plus-sized clothing subscription service. The company was rebranded as CaaStle in 2019.
