Actually I’ve seen this in several startups as well as large eng groups. The thought is, the CTO isn’t doing the business stuff and has the backs of the engineers. And as a leader, the CTO knows when to leave. I last saw it a year ago, and 3 years ago, and 5 years ago, and 6 years ago, etc. No fraud or non-payment involved, but it’s a kind of engineer’s logic that you actually see pretty often.