CaaStle, a fashion startup that raised over $534 million, has declared itself nearly bankrupt amid allegations of financial misconduct against its founder, Christine Hunsicker. The company, which operates as a clothing inventory monetization platform, has faced severe operational challenges, including furloughing employees and instructing its management team to disregard previous financial statements. Following the scandal, Hunsicker has resigned as CEO, and the board has appointed George Goldenberg, the firm's chief operating officer, as interim CEO. Reports indicate that while Hunsicker claimed the company generated $519 million in revenue for 2023, the actual figure was only $15.7 million. Investors are now facing substantial losses due to what has been described as one of the largest startup frauds in recent memory.