Carta Under Investigation for Alleged Misuse of Confidential Customer Information

CEO Henry Ward acknowledges breach of privacy protocols, considers future of company's role in liquidity business.

Carta, a leading provider of equity management services for startups, is under investigation for allegations of using confidential customer information for self-dealing.
Karri Saarinen, CEO of Linear, a Carta customer, accused Carta of reaching out to his family member about potentially selling their Linear shares without consent or knowledge.
Carta CEO, Henry Ward, acknowledged the incident and stated that it was a breach of their privacy protocols, impacting Linear and two other companies.
Saarinen's complaint has garnered significant attention, with other startup founders sharing similar experiences with Carta's services.
Ward is considering whether Carta should continue in the liquidity business, given the potential compromise of trust.