Online Authentication Company Files for Bankruptcy Jumio, a Silicon Valley startup that enables ID verification using a mobile device, has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court. In court documents, the company’s current management team said it is unable to raise funding in the wake of investigations into financial irregularities. Founder and CEO Daniel Mattes left the company last June and, in December, Jumio restated financial results for 2013 and 2014, which lowered its valuation.

Facebook co-founder Eduardo Saverin, one of Jumio’s initial investors, entered what is being characterized as a stalking-horse bid of more than $22 million to purchase the company’s assets. According to wire service reports, Jumio has received subsequent interest from 32 potential bidders. In a press release last week, the company said Saverin also has committed $3.7 million to fund operations while it goes through bankruptcy proceedings.

“Jumio created the online ID verification industry, and we are thriving from an operational standpoint as we continue to see robust bookings and build strong relationships with some of the most recognizable brands and companies in the world,” said Stephen Stuut, CEO of Jumio. “After thoroughly evaluating all available options, we determined that an asset sale is in the best interests of Jumio and our stakeholders. We expect this process to be seamless for our customers with no disruption to our operations.”