Skarp Technologies' laser razor, a product that promises to end the reign of the traditional razor, had more than 20,000 backers on Kickstarter, but officials failed to provide the crowdfunding site with enough evidence of a working prototype.
Projects seeking to fund prototypes are allowed, so long as creators do not offer the finished product as a perk.
"We encourage creators to bring early-stage and ambitious ideas to Kickstarter, as those are often the ideas that are most in need of support," a spokesman from Kickstarter told CNBC. "But we require that, from the beginning, backers are given a realistic sense of where the project stands in the development process."
That technical violation caused the campaign to be shut down.
All pledges to the campaign were cancelled by Kickstarter following the suspension. The site only charges' backers credit cards if a project reaches its goal.