The startup world is often equipped with stories of innovation, ambition and ideas. It is a segment where dreams take flight and industries are redefined. However, beneath this lies a dark reality where greed and deception have occasionally shattered trust of investors and sometimes of employees. A good number of them have become infamous due to scandals.
Blood testing startup Theranos is a good example as it unpractically claimed to run multiple tests from a single drop of blood. Founder Elizabeth Holmes became a Silicon Valley icon and secured massive investments. Investigations revealed that his claimed technology or process failed to do so.
The story of FTX is similarly a cautionary tale and particularly in the world of cryptocurrency. Sam Bankman-Fried founded the exchange that once grew into a $32 billion giant. However, the empire collapsed almost overnight after it was reported that risky financial dealings and mismanagement were being caried out.
India’s Satyam Computers was once a shining star in the IT industry, but it became infamous for one of the largest frauds in the country’s history. Founder Ramalinga Raju confessed of fabricating financial statements to inflate profits.
Startup OneCoin targeted the cryptocurrency space for the purpose of fraud. The company marketed itself as a rival of Bitcoin, but turned out a massive Ponzi scheme. It defrauded investors of billions. Founder Ruja Ignatova disappeared leaving behind financial ruin for thousands and unanswered questions about the safeguards in the crypto industry.
Mozido in the fintech space raised millions in investments and was later exposed for falsifying financial data as well as misusing funds for lavish personal expenses.