SoftBank Invested $170M in Social App with Fake Users

 

Almost immediately after securing the significant investment from SoftBank, IRL encountered numerous challenges. The company laid off 25 percent of its workforce, and doubts began to emerge among employees regarding the accuracy of the claimed user numbers. As a result, the Securities and Exchange Commission (SEC) launched an investigation into whether IRL misled investors. In April of this year, the company’s board suspended founder Abraham Shafi and appointed a new acting CEO.