SEC Accuses Bitwise’s Ex-CEOs of $70 Million Fraud

The former co-CEOs of Bitwise Industries Inc., a private technology services startup based in Fresno, California, have been charged by the Securities and Exchange Commission (SEC) for falsifying financial documents while raising approximately $70 million from investors in 2022.

The allegations against Jake Soberal and Irma Olguin, Jr. expose a scheme of deception that ultimately led to the downfall of the company. The former co-CEOs are accused of making material misrepresentations and fabricating financial documents to mislead investors regarding Bitwise’s financial health.

The documents included falsified bank records and a counterfeit audit report, both of which allegedly portrayed Bitwise as a thriving business with healthy financial performance. In reality, Bitwise was grappling with chronic cash shortages and struggling to sustain its operations.

According to the SEC, the scheme’s consequences became evident in May 2023 when Bitwise was unable to meet its payroll obligations and was forced to terminate its entire workforce.