Founder of IRL social media app charged with defrauding investors
Boonchai Wedmakawand | Moment | Getty Images
IRL was accused of the founder of the company behind the social media application cheat Investors of 170 million dollars for the company’s 2021 financing tour Ministry of Justice He said Wednesday.
Doj accused Hawaii’s 38 -year -old Abraham Shafi in the northern part of California, 38 -year -old Abraham Shafi in connection with the schema, wire fraud, securities fraud and obstacle.
Shafi was the CEO of Irl’s mother’s home company. The company was worth $ 1 billion after the 2021 C series financing tour. Closed in June 2023, IRL was a platform for users to organize events and offline events. In 2018, it was one of the best social applications of Apple.
Doj claimed that Shafi spent “very little” to get new users to get new users, and claimed that the application to the C Series has spent millions on the incentive advertisement to increase the installation of the application.
Doj said that he then hidden the cost by invoicing another company.
The indictment also claims that CEO and her fiancée use investor funds for hundreds of thousands of dollars, including thousands of dollars for buying luxury hotel accommodation, luxury clothes, home furniture retailers, art lessons, and wedding guests, including payments for ventilation and luxury hotels.
Shafi said that he supported CNBC in February 2018 that he supports the potential of competition with investors. Facebook And Snapchat. Among the IRL investors, Peter Thiel’s Founder Fund and venture company Floodgate included Floodgate.
Among the founders of Shafi in IRL were the first board member Scott Banister Paypal And an early investor on Facebook, as well as others.
In the Doj indictment, only Shafi was chosen. Doj is faced with a maximum of 20 years of imprisonment for each number.
Shafi last year, Securities and Stock Exchange Commission For the same scheme.
“Shafi took advantage of investors’ appetite investment He collected about $ 170 million in the field of pre -IPO technology and fraudulent way by lying about IRL’s business practices. “He said.
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