Former Bitwise co-CEOs face SEC accusations for a $70 million fraud, revealing a deceptive scheme that led to the company’s downfall.
The Securities and Exchange Commission (SEC) has accused the former co-CEOs of Bitwise Industries Inc., a private technology services business with headquarters in Fresno, California, of forging financial records in order to get almost $70 million from investors in 2022.
The claims made against Irma Olguin, Jr. and Jake Soberal reveal a deceitful plan that finally brought about the company’s demise. The former co-CEOs are charged with creating false financial papers and making substantial misrepresentations in order to deceive investors about Bitwise’s state of finances.
The documents purportedly showed Bitwise as a successful company with strong financial performance, and they contained fake audit reports and forged bank records. In actuality, Bitwise was having trouble keeping up with its activities due to ongoing cash problems.
The ramifications of the scam, according to the SEC, became apparent in May 2023 when Bitwise was forced to fire its entire staff due to nonpayment of its payroll obligations.
