Ask HN: How do I explain “startup went bankrupt” to family and future employer?

The founder and co-founders lied about raising capital. They burned too much money scaling the team before owning the product market fit. The founder went full retard and psycho last week. He spent the last few thousand dollars on weed.

I noticed our burn rate was higher than normal eight months ago with the lack of capital to get us through this year and confronted them about it. I started a recon mission when they didn't give a clear answer.

One problem I've had so far is explaining why I'm leaving. I don't want to come off as bad mouthing a past employer.