CaaStle Founder Christine Hunsicker Charged With Over $300M Fraud

Christine Hunsicker, founder and former CEO of the bankrupt clothing technology startup CaaStle, has been criminally charged with defrauding investors of over $300 million, according to the U.S. Department of Justice. The charges include wire fraud, securities fraud, money laundering, aggravated identity theft, and making false statements to financial institutions, with allegations that she misrepresented CaaStle as a $1.4 billion 'Clothing-as-a-Service' company despite its severe financial distress. Hunsicker is accused of falsifying financial statements and bank records to raise capital, including inflating 2023 revenue figures and misleading investors about the use of their funds. She surrendered to authorities and could face decades in prison if convicted, while the Securities and Exchange Commission has filed a related civil lawsuit. CaaStle raised over $500 million in funding but filed for bankruptcy in June, and additional lawsuits have been filed by a clothing brand and an investment vehicle affiliated with the company. Former employees noted surprise at the financial troubles, citing the executives' secretive handling of the company's fiscal health. Hunsicker’s lawyers have stated that the indictment presents an incomplete picture and emphasized their client’s cooperation with prosecutors.