“An internal investigation by IRL’s board of directors found that 95% of the app’s reported 20 million users were “automated or from bots,” The Information first reported.”
SoftBank led a $170 million round at a $1.17 billion valuation on those 20 million users. IRL raised more than $200 million in total. Employees doubted the numbers, then the SEC did, and only then did the board suspend the founder. A billion-dollar valuation and nobody counted the humans.