Several months after securing more than $100 million from venture capital investors, fraud prevention startup NS8 fired hundreds of employees last Thursday after informing them that the company is being probed for fraud.
The Las Vegas-based company said Thursday in a letter sent to employees that it has to downsize after "sudden and unexpected circumstances". The letter was shared on Twitter by local blog Vital Vegas. The startup's CEO Adam Rogas confirmed to Forbes that he left the company abruptly last week.
The effective shutdown of NS8 came several months after the company announced that it raised $123 million in a Series A round led by global VC company Lightspeed Partners. According to statistics from startup tracking company Pitchbook, the round valued the company at over $400 million.
NS8 could not be reached for comment. The SEC declined to comment.