Cybereason CEO accuses Mnuchin, SoftBank of forcing company toward bankruptcy
Cybereason CEO accuses Mnuchin, SoftBank of forcing company toward bankruptcy
Eric Gan’s lawsuit claims investors blocked crucial funding to tighten control over the firm.
The CEO of Cybereason, a cybersecurity firm once valued in the billions, has sued two of its biggest investors—former U.S. Treasury Secretary Steven Mnuchin and SoftBank’s Vision Fund—accusing them of deliberately obstructing crucial financing to push the company toward bankruptcy.
In a lawsuit filed in Delaware Chancery Court, Cybereason CEO Eric Gan alleges that the investors, leveraging their board positions, systematically rejected funding proposals, including a $150 million capital infusion, in an attempt to tighten their control over the company. Without immediate financial relief, Gan warns, Cybereason could be forced into Chapter 11 bankruptcy.
“This is not just a dispute over financing—it’s a deliberate strategy to preserve financial advantages at the expense of the company’s survival,” the lawsuit states.
Gan, who owns 6.8% of Cybereason, contends that Mnuchin’s investment firm, Liberty Strategic Capital (6.6% stake), and SoftBank Vision Fund (20%) have consistently blocked external funding, despite the company facing a critical debt deadline with JPMorgan Chase & Co. on March 11. SoftBank, which indirectly controls approximately 31% of Cybereason through various investment vehicles, has remained largely silent on the matter.
SoftBank Vision Fund dismissed the claims as “meritless” in a statement to Bloomberg. Mnuchin and Liberty Strategic Capital have yet to comment.
Founded in 2012 by Israeli entrepreneurs Lior Div, Yonatan Striem-Amit, and Yossi Naar, Cybereason was once among the most promising players in cybersecurity, aiming to compete with industry leaders such as CrowdStrike and SentinelOne. Specializing in ransomware protection and malware prevention, the company raised approximately $850 million over the years, with SoftBank as its largest investor.
At its peak, Cybereason was preparing for an IPO in 2021, targeting a $5 billion valuation after raising $325 million in a funding round led by Mnuchin’s Liberty Strategic Capital. However, the economic downturn of 2022 sent the company into a downward spiral. Three rounds of layoffs followed, affecting more than 300 employees. By 2023, Cybereason was valued at just $300–$400 million—over 90% lower than its 2021 peak.
Amid growing financial strain, SoftBank injected an emergency $100 million investment in April 2023. The funding coincided with the resignation of CEO Lior Div, who was replaced by Eric Gan, a longtime SoftBank executive.
Cybereason announced last November that it is merging with U.S.-based cybersecurity firm Trustwave, with the companies continuing to operate independently.
