The founder of the defunct social media service has been charged with fraud.

The Securities and Exchange Commission (SEC) charges Abraham Shafi with deceiving investors by making false claims about the company’s growth.
IRL, which was originally thought to be a potential competitor to Facebook, derived its name from its goal of encouraging its online members to meet in person.
However, the early euphoria faded when it was revealed that the majority of IRL’s users were bots and that the platform would close in 2023.
In addition to accusing Mr. Shafi of misleading investors, the SEC claims he disguised his and his fiancée’s significant use of corporate credit cards for personal spending.
It is alleged that he and Barbara Woortmann spent hundreds of thousands of dollars on personal costs such as clothing, home improvements, and travel.
Monique C. Winkler, Director of the SEC’s San Francisco Regional Office, stated, “As we asserted, Shafi exploited investors’ enthusiasm for investments in the pre-IPO technology market and fraudulently obtained nearly $170 million by lying about IRL’s business procedures.