One of Silicon Valley's most well-known and most decorated executives and angel investor has resigned as Chief Operating Officer of Square. Keith Rabois was accused of having an improper relationship with a colleague as well as threats of a sexual harassment lawsuit.

Rabois denies the allegations but admitted to a 'lapse of judgment' for failing to disclose the relationship to his principals. Despite such legal and personal issues, he joins Khosla Ventures as its senior investment professional starting March 1.

Khosla is a venture capital firm founded by former Sun Microsystems founder Vinod Khosla in 1994. According to Khosla, "Keith knows how to build a company and how to advise entrepreneurs. Most people who sit on the boards of entrepreneurial companies have not earned the right to advise them; they haven't been on the inside of fast growth companies. Keith has been there and he's seen all the problems and adversity."