CaaStle Founder Charged With $300M Investor Fraud

Christine Hunsicker, founder of the clothing technology startup CaaStle (formerly Gwynnie Bee), has been arrested and charged with defrauding investors of over $300 million between 2019 and 2025 by using forged documents, fabricated audits, and false claims about the company's finances. Prosecutors allege she misled investors about CaaStle's revenue, profits, and cash reserves, at one point claiming the company was valued at over $1.4 billion despite its financial distress. The indictment asserts Hunsicker continued fraudulent activities after being removed by the board and used investor funds for company operations rather than their intended purpose. She faces multiple charges, including wire fraud, securities fraud, money laundering, and aggravated identity theft, and could receive decades in prison if convicted. Her attorneys maintain she has been cooperative and dispute the indictment's narrative. CaaStle has filed for Chapter 7 bankruptcy, and the SEC has brought a related civil suit.