24/7 Cryptocurrency News

Bitwise Founders Arrested for $100M Investor Fraud

The US Attorney and SEC charge Bitwise co-founders with fraud, alleging they fabricated financial info to secure $100M from investors.
Published by
Bitwise Founders Arrested for $100M Investor Fraud

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 United States Attorney’s office, under Phillip Talbert, has accused the duo of a series of deceptive financial practices.

Advertisement

Bitwise Executives Charged with Fabricating Finances

Moreover, the indictment details a troubling scenario. Olguin Jr. and Soberal are accused of fabricating bank statements and providing investors and their own board with false financial information. They allegedly used properties as loan collateral without proper disclosures. Additionally, the substantial salaries drawn by the co-founders have come under scrutiny amidst the company’s financial turmoil.

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.

Advertisement

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.

Amid these charges, Bitwise has actively engaged in the exchange-traded fund (ETF) market. The company has notably amended its application for a spot Bitcoin ETF, aiming to offer investors regulated exposure to Ethereum and Bitcoin futures.

Read Also: Ethereum Soars In Unique Addresses After SEC Hints At Ether ETF Approval

Advertisement

Share
Maxwell Mutuma

Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges

U.S. private payrolls unexpectedly fell in September, raising market bets that the Federal Reserve will…

October 1, 2025
  • 24/7 Cryptocurrency News

Hashdex Adds Cardano to Crypto Index Fund as ADA Gains SEC Listing Eligibility

Asset manager Hashdex has officially included Cardano in its Nasdaq Crypto Index U.S. ETF. This…

October 1, 2025
  • Bitcoin News

U.S. Treasury To Ease Tax Rule on Unrealized Bitcoin Gains, Aiding Saylor’s Strategy

The U.S. Treasury and IRS have released an interim guidance, which highlights plans to ease…

October 1, 2025
  • 24/7 Cryptocurrency News

Trump-Backed World Liberty (WLFI) Plans RWA Tokenization Paired with USD1 Stablecoin

Trump Family's World Liberty Financial has unveiled big real-world asset (RWA) tokenization plans on Wednesday,…

October 1, 2025
  • 24/7 Cryptocurrency News

Stripe Eyes U.S. Banking Charter, Pioneers One-Click Stablecoin Issuance for Firms

Fintech giant Stripe has unveiled a suite of tools to enable businesses to tap into…

October 1, 2025
  • 24/7 Cryptocurrency News

Breaking: Metaplanet Expands Treasury With 5,268 BTC Purchase, Climbs to 4th Largest Holder

Metaplanet has expanded its Bitcoin portfolio with another purchase. The Tokyo-listed firm is now the…

October 1, 2025