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.
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.