NS8, a tech startup that protects against online fraud, is now under SEC fraud investigation. CEO abruptly left last week as company lays off hundreds of employees

Back in June, we wrote about NS8 after the fraud prevention startup raised $123 million Series A funding to provide online fraud detection and prevention for small-and-medium-sized businesses. The round was led by Lightspeed Venture Partners and AXA Venture Partners (AVP).

Less than three months after NS8 raised the Series A funding from venture capital investors, the Las Vegas-based cybersecurity startup fraud prevention startup announced Thursday it had laid off hundreds of employees on Thursday after informing them it was under investigation for fraud. The startup’s CEO, Adam Rogas, abruptly left the company last week, according to a report from Forbes. NS8 spokesperson could not be reached for comment. The SEC declined to comment.

In a letter sent to employees, which was later shared on Twitter by local publication Vital Vegas, NS8 said that it was forced to downsize after “sudden and unforeseen circumstances.” Vital Vegas said, “Source says CEO of NS8 Inc. (a “comprehensive fraud prevention platform”) abruptly resigned last week, about 240 employees are being laid off today, 75 in Las Vegas. Here’s the letter sent to staffers.”

Source says CEO of NS8 Inc. (a "comprehensive fraud prevention platform") abruptly resigned last week, about 240 employees are being laid off today, 75 in Las Vegas. Here's the letter sent to staffers. https://t.co/PWWf7dOpYR pic.twitter.com/xKBZqD73Xw

— Vital Vegas (@VitalVegas) September 11, 2020

Founded in 2016 by Adam Rogas, NS8’s fraud prevention platform combines behavioral analytics, real-time scoring, and global monitoring to help merchants of all sizes optimize order processing and minimize risk. Built on the Protect API, this app integrates directly into NS8’s platform and allows merchants to begin fighting fraud within minutes.

Below is the letter sent to NS8 employees.