Osom Products, the phone company founded by ex-Essential employees, is shutting down

Osom Products Inc., a mobile phone company founded by former Essential employees, is shutting down this week after releasing only one phone. The news comes after the company's former chief privacy officer sued Osom, claiming the CEO used business funds for personal expenses. Most employees will be laid off on Friday but will receive severance pay and continued healthcare. Osom was started by Jason Keats and other former Essential executives and employees after Essential shut down in 2020. The company aimed to create privacy-focused products, including a USB-C cable and the Osom OV1 smartphone. In 2022, Osom partnered with blockchain company Solana to launch a version of the OV1, called the Saga, with a built-in crypto wallet. A few engineers will remain as contractors to deliver a security update for the Saga smartphone in December and fulfill obligations to Solana. Osom CEO Jason Keats confirmed the company's shutdown in a statement, citing a bleak market climate for fundraising and the inability to raise a new round of funding.