CaaStle Founder Faces US Fraud Charges Over $300M Scheme

Christine Hunsicker, founder and former CEO of fashion platform CaaStle Inc., has been charged by federal prosecutors and the SEC with defrauding investors out of more than $300 million through false financial statements, fabricated audit reports, and misleading claims about the company's profitability. She allegedly overstated revenues by over 7,300% from 2019 to 2025, misrepresenting CaaStle as a profitable and high-growth company, while it was actually facing significant financial distress. Hunsicker also allegedly misled investors about share transactions and diluted their interests by issuing new shares without disclosure. After resigning as CEO amid these allegations, she turned herself in, pleaded not guilty, and was released on bail. Authorities highlighted that the case underscores risks in investing in pre-IPO tech companies lacking SEC registration, with law enforcement committed to protecting investors from such fraudulent schemes. Hunsicker’s lawyers claim she has cooperated fully and assert that the indictment presents an incomplete picture.