Did the creator of IRL use millions in investor funds for lavish weddings and luxury vacations?

economictimes.indiatimes.com:

IRL, a social networking platform that assists Gen Z users in locating real-world events, has raised $170 million from investors, including SoftBank. IRL was promoted as a cutting-edge substitute for Facebook Groups, with substantial user participation. But last year, the app was taken down due to the discovery that the majority of its user base was fraudulent, which prompted SoftBank to file a different case.

Personal expenses charged to company funds

The action filed by the SEC describes Shafi and Woortmann's use of corporate credit cards for personal expenses. These included costly expenses for their 2022 nuptials, such travel and opulent lodging for guests. In addition, they blew tens of thousands on Hawaii vacations, which included a $34,700 resort bill in October 2021. In June 2021, in conjunction with a funding round from SoftBank, Woortmann also collected more than $16,000 at a store that specialized in spirituality and alternative health.

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The couple’s misuse extended beyond personal celebrations. They also charged home improvements, clothing, jewelry, dining out, and groceries to the company. When confronted by IRL’s chief financial officer, Shafi reportedly repaid around $2.5 million but left some expenses unsettled.

Misleading investors and advertising spending

The SEC alleges that Shafi misled investors about the app’s growth strategy. He had claimed that the app’s popularity grew through word of mouth and viral