Bitwise Co-founders Charged with $100 Million Fraud, Face 20 Years in Prison

Co-founders Irma Olguin Jr. and Jake Soberal allegedly fabricated financial information, manipulated over $100M in funding and falsified documents while raising $70M from investors, leading to the downfall of tech-startup Bitwise Industries and loss of 900 jobs.

Co-founders of Bitwise Industries, Irma Olguin Jr. and Jake Soberal, have been charged with fraud for allegedly fabricating financial information and manipulating over $100 million.
Bitwise Industries, started as a coding boot camp in Fresno in 2013, had rapidly expanded with co-working spaces in California, Texas, and Ohio, but filed for bankruptcy in June 2023 after furloughing and then eliminating all 900 of its employees.
The pair allegedly lied to investors, board members, and lenders from at least January 2022, using falsified documents and manipulated information to secure funding.
They used the money to meet Bitwise's payroll, renovate office spaces, and repay prior debts, including their own salaries of $600,000 per year.
If they are convicted, Olguin and Soberal could each face a maximum of 20 years in prison and a $250,000 fine.

U.S. Department of Justice

SEC.gov