Get Together CEO Indicted on Wire and Securities Fraud Charges—Another Crypto Cautionary Tale

Federal prosecutors drop the hammer on Get Together's chief executive, alleging a sophisticated scheme to defraud investors through false promises and manipulated financial projections.

Wire Fraud Charges Take Center Stage

The DOJ claims the CEO orchestrated electronic transfers of funds under deceptive pretenses, funneling millions into personal accounts rather than development efforts.

Securities Violations Exposed

Regulators allege unregistered securities offerings were masked as 'community building exercises'—because nothing says compliance like skipping SEC paperwork entirely.

Another day, another executive learning that blockchain doesn't make subpoenas disappear. The irony? They probably accepted payment in fiat.

TLDRs;

• Abraham Shafi, CEO of Get Together, indicted for defrauding investors of $170 million tied to IRL’s growth.
• Prosecutors allege inflated user numbers and bot-driven metrics propped up IRL’s $1.2 billion valuation.
• DOJ claims Shafi misled investors about ad spending while diverting funds for luxury personal expenses.
• SEC also filed a civil lawsuit; Shafi faces up to 20 years per charge.

Abraham Shafi, the founder and chief executive officer of Get Together, is facing federal charges of wire fraud, securities fraud, and obstruction of justice after allegedly deceiving investors during the 2021 fundraising round for the IRL social media app.

The indictment, filed in Oakland, California, accuses Shafi of orchestrating a $170 million fraud that ultimately led to the platform’s collapse.

Get Together operated IRL, a social media application designed to connect people through offline events and activities. Once valued at $1.2 billion and boasting tens of millions of claimed active users, IRL shut down in June 2023 after internal investigations revealed that the vast majority of its user base was composed of bots rather than real people.

Prosecutors allege hidden ad spending

According to the U.S. Department of Justice, Shafi and his team spent millions of dollars on incentive advertising to artificially boost app downloads before the Series C funding round.

At the same time, he allegedly told investors that the company spent “very little” on customer acquisition, hiding the true expenses by routing invoices through another firm.

This alleged deception helped Get Together secure over $200 million in funding from high-profile investors, including SoftBank, at a time when venture capitalists were aggressively betting on fast-growing social media platforms. By presenting inflated user metrics, prosecutors argue, Shafi was able to push the company’s valuation past the billion-dollar mark, despite IRL’s engagement being largely fabricated.

Investor funds used for luxury lifestyle

The indictment goes beyond financial misrepresentation and accuses Shafi of using investor capital for lavish personal spending.

Federal prosecutors allege that funds were diverted to cover luxury hotel stays, designer clothing, furniture, art classes, and even extravagant wedding costs. Court filings detail payments for guests’ airfare and high-end accommodations during Shafi’s wedding celebrations.

This pattern of personal enrichment is not unique to the Get Together case. Similar allegations have surfaced in other startup fraud scandals, where founders simultaneously misled investors about business performance and misappropriated funds for personal gain. Such conduct often accelerates scrutiny from regulators, as it demonstrates both corporate fraud and a breach of fiduciary responsibility.

SEC files parallel civil lawsuit

In addition to the criminal charges, the Securities and Exchange Commission (SEC) filed a civil lawsuit against Shafi last year, signaling the seriousness of the allegations.

If convicted, Shafi faces up to 20 years in prison for each charge, a sentence that could potentially rival other high-profile startup fraud cases.

The case highlights vulnerabilities in the venture capital ecosystem, where investor enthusiasm for rapid growth can sometimes override due diligence. The collapse of IRL underscores how even well-resourced investors can overlook fundamental warning signs, particularly when user engagement metrics are easily manipulated with automated accounts.