The tech community in Fresno has been rocked by the stunning revelation that Bitwise Industries co-founders Irma Olguin Jr. and Jake Soberal have been arrested. They face allegations of executing a fraudulent scheme that swindled investors from a staggering $100 million. The Unit...
Bitwise Executives Charged with Fabricating Finances
The charges come on the heels of Bitwise furloughing 900 employees, causing significant disruption in its operations. Consequently, this has put a halt to the company’s ambitious projects meant to open doors in the tech industry for underserved communities. Hence, the future of those employed and the company’s commitments to various U.S. cities remain uncertain.
Furthermore, the Securities and Exchange Commission (SEC) has leveled its own charges against the Bitwise executives. They claim the company, under the guidance of Olguin Jr. and Soberal, grossly misrepresented its financial health to investors, raising $70 million based on these purportedly falsified credentials.
Bitwise ETF Plans Continue Despite Scandal
The SEC’s investigation paints a grim picture of a company on the edge of collapse despite public projections of growth and stability. The SEC points out an alleged deceit where the founders reportedly inflated bank account balances in communications to investors.