The founder of clothing rental start-up CaaStle, Christine Hunsicker, faces charges of defrauding investors out of nearly £230 million. The 46-year-old appeared in a New York court last week where she pleaded not guilty. She was released on bail set at $1 million.
A Promising Start
CaaStle was once considered a rising star in the retail-tech world. The company allowed customers to rent clothes from well-known brands rather than buy them, offering a subscription-based service. It attracted attention for its modern approach to fashion and technology and at one point claimed a valuation of more than $1.4 billion.
However, behind the scenes, prosecutors say the company’s finances were far weaker than advertised. From around 2019 onwards, Hunsicker is accused of deliberately presenting false information to make the business look stronger than it was.
False Claims and Forged Documents
The US Department of Justice claims that Hunsicker provided investors with financial reports that exaggerated cash reserves and profitability. In one case, a document suggested CaaStle had around $200 million in the bank. The real figure, they say, was under $200,000.
In another report, she allegedly claimed the company made $24 million in operating profit during a single quarter in 2023. In reality, the company made less than $30,000.
The charges also allege that she used fake audit documents and forged the signatures of others to back up her claims. These tactics, prosecutors say, helped her raise hundreds of millions in funding.
A Second Venture, More Money Raised
Alongside CaaStle, Hunsicker also launched a financial venture called P180. She is charged with using similar tactics to make false claims in order to raise an additional $30 million. This charge raises the total amount of money allegedly involved in the fraud to over $300 million.
She now faces six criminal charges, including fraud, money laundering, and identity theft. If convicted, she could be sentenced to several decades in prison.
Collapse and Resignation
Hunsicker resigned from the board of CaaStle at the end of 2024 and stepped down as chief executive in March 2025. The business declared bankruptcy three months later, giving lenders and investors little prospect of getting their money back.
The case has raised concerns about oversight in the start-up world, particularly in tech sectors where businesses are often valued on potential rather than profit.
Her Legal Team Responds
Hunsicker’s lawyers argue that the presentation of the case has been unfair. They claim she has cooperated with investigators from the start and will fight the charges in court. They have not yet shared further details but say more will come out during the trial.
The US financial regulator, the Securities and Exchange Commission, has also filed a civil complaint, accusing her of misleading investors about the company’s future and presenting fake financial statements.
A Broader Warning
This case has drawn attention because of what it says about start-up culture. Over the past decade, many tech firms have raised large sums based on future growth and bold projections. Critics argue that this model promotes risky behaviour and overlooks warning signs.
The collapse of CaaStle may now become a reference point for how quickly confidence can turn into crisis—and how some companies fall short of the promises they make to investors.
What Comes Next
Hunsicker remains out on bail but is banned from contacting former staff or investors. No trial date has been set. If the charges hold, this case could become one of the most significant white-collar fraud trials in recent years involving a tech founder.
Until then, the legal process will continue quietly in the background, as many watch closely to see how a story that began with style and innovation ended up in court.
