CA: Bitwise execs could face 20 years behind bars in massive fraud case

Source: SFGate

“Federal officials alleged this week that the two leaders of a Fresno-based tech company defrauded investors out of tens of millions of dollars to prop up their struggling company. The United States Attorney’s Office for the Eastern District of California filed a criminal complaint Wednesday against Irma Olguin Jr. and Jake Soberal, co-founders of the tech company Bitwise. The complaint was accompanied by a sworn affidavit from FBI agent Chet Johnston that detailed the findings of a joint probe by the FBI and the IRS’ criminal investigation team. Johnston wrote that, in interviews, Olguin and Soberal admitted to forging financial records and misleading investors, saying they ‘admitted to significant wrongdoing’. The U.S. Attorney’s Office issued a press release about the charge, conspiracy to commit wire fraud, on Thursday. The news comes nearly six months after Bitwise’s sudden collapse, which left its 900 employees out of work and the firm declaring bankruptcy.” (11/16/23)