British encryption startup Arqit is exaggerating its prospects, say former employees and others

A British cybersecurity startup reached a multi-billion dollar valuation when it went public last autumn on a promise to produce encryption technology that would protect the defense industry, businesses and consumers alike from the prying eyes of next-generation computing systems. Founder and CEO David Williams told investors at the time that his company, Arquit Quantum had an “impressive backlog” in revenue and was poised “for hyperscale growth.”

However, according to former employees and others familiar with the company and documents viewed by The Wall Street Journal, Arqit has given investors an overly optimistic view of its future earnings and the readiness and viability of its signature encryption system.