Company official forced out after he had sexual relationship with male employee (video)

Keith Rabois 
By: Tanya Malhotra 

(Scroll down for video) A top official at a large mobile payment processor was forced to resign after a same sex relationship was disclosed, according to a company statement.

Square Inc. said that chief operating officer Keith Rabois, resigned after being accused of misconduct by a coworker.

Following a statement this week that he was going to do something new, the company sent an email yesterday, saying that there was the threat of a lawsuit by an employee.

In a blog post, Rabois said he was involved in a romantic relationship with someone who was hired at Square. He denied the allegations that the relationship was not consensual.

"Although we found no evidence to support any claim, Keith made ​​errors of judgment that ultimately undermined his ability to remain an effective leader at the company," the company wrote.

"We have accepted his resignation," the company continued.

When Rabois began, the company had 17 employees, and less than 1,000 clients were actively using the product, a stamp-sized device that enables credit card payments through mobile phones.

The company is now Valued at $3.25 billion, and has more than 3 million individual and business customers. The company processes over $10 billion in transactions on an annual basis.

Rabois said in the blog that there should not have been an ongoing romantic relationship with a coworker.