[sfobiab]

What I have heard and seems was considered "common knowledge" about a year ago was that the founder embezzled the money. His VCs considered suing, but decided it was just too messy. I'm not joking, something about some seriously extravagant vacations and a house renovation all paid right out of the company's bank account.

[habitue]

Any links to direct discussion of this (or sources)? All I can find is indirect evidence that they burned through vc money too fast