Ryan Breslow, the founder of fintech company Bolt, has been reinstated as CEO, the company confirmed to TechCrunch on Wednesday. This development comes after a challenging few years for Bolt, marked by allegations of misleading investors and violating security laws.

In a communication to investors, Breslow expressed gratitude to the company's backers for their "support and encouragement" and thanked employees for their hard work. Justin Grooms, who served as interim CEO since last March, will now take on the role of president at Bolt.

Breslow's return to the helm of Bolt is a significant development, given his history with the company. He stepped down as CEO in early 2022 amidst allegations that he had inflated metrics while fundraising, which led to legal battles with investors, including Activant Capital. The company reached a settlement with Activant Capital last September, which stipulated that Bolt would repurchase Activant's shares of Bolt stock, effectively ending Activant's interest in the company.

Despite the controversy surrounding Breslow, his reinstatement as CEO was reportedly met with "unanimous approval" from Bolt's board. The move is likely linked to a stalled funding round last year, which aimed to raise $200 million in equity and an additional $250 million in "marketing credits" at a $14 billion valuation. As part of that deal, Breslow was set to be re-instated as CEO. Although Bolt declined to comment on the fundraise, the company's current financial situation suggests that the valuation may have been overly ambitious.

According to reports, Bolt's annualized run rate stood at $28 million in revenue, with a gross profit of $7 million as of the end of March 2024. A valuation of $14 billion would represent an enormous multiple over these numbers, higher than the $11 billion valuation achieved in January 2022. Bolt has raised around $1 billion in total venture-backed funding from investors, including BlackRock, Schonfeld, Invus Opportunities, CreditEase, H.I.G. Growth, and Moore Strategic Ventures, among others.

The reinstatement of Breslow as CEO raises questions about the company's future direction and its ability to regain investor trust. Bolt's one-click checkout software has been successful in speeding up checkout for retailers, but the company's leadership and financial struggles have overshadowed its technological achievements. As Bolt moves forward under Breslow's leadership, it remains to be seen whether the company can overcome its past challenges and achieve long-term success.

In the broader context, Bolt's story serves as a cautionary tale for startups and entrepreneurs. The company's rapid growth and high valuation were accompanied by allegations of misconduct, highlighting the importance of transparency and accountability in the tech industry. As the fintech landscape continues to evolve, Bolt's journey serves as a reminder of the need for strong leadership, ethical practices, and sustainable business models.