Bitwise Asset Management stated that it has no ties to the California-based technology startup Bitwise Industries amid regulatory troubles.
The statement followed charges by the U.S. Securities and Exchange Commission against the project’s co-founders for conspiring to defraud investors. According to the agency, Jake Soberal and Irma Olguin misled investors about the startup’s finances.
Today we announced charges against Jake Soberal and Irma Olguin, Jr., the former co-CEOs of Fresno, California-based private technology services startup Bitwise Industries Inc., for misleading investors about the company’s finances.
— U.S. Securities and Exchange Commission (@SECGov) November 9, 2023
The accused could have simply admitted that Bitwise’s business model was unsustainable. Instead, they used lie after lie to pull more than $100 million into a dying enterprise through fraud, the statement said.
Prosecutors noted that the executives forged bank statements and provided false information to the board of directors. The company filed for bankruptcy earlier this year, despite assurances of financial stability.
A similarly named startup caused confusion on social media — in some posts the Bitwise Asset Management logo appeared.
Representatives said that Bitwise Asset Management "has had no relationship with the now-defunct Bitwise Industries."
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