Silicon Valley investment scam exposed, investors lose more than $500 million
A huge tech investment scam just got exposed in Silicon Valley, costing investors more than $500 million.
The scheme used fake sales numbers and doctored bank statements to make pre-IPO investment platform Linqto, AI startup SKAEL and chatbot company GameOn look way more successful than they actually were.
Turns out, a lot of people got fooled by these made-up financials.
Linqto bankrupt, SKAEL GameOn founders implicated
Linqto ended up bankrupt last year after tricking more than 13,000 investors with false promises about shares in big names like Kraken.
Its founder William Sarris and former CEO Joseph Endoso, who pleaded guilty to fraud charges Aug. 27 and is cooperating with prosecutors, are facing charges.
SKAEL's founder admitted to faking revenue also, while GameOn's founder is accused of misusing funds and goes on trial in 2027.
On the bright side, experts like Francine McKenna say it's smart to always ask for audited financials before investing in private tech companies, especially with big IPOs coming up.