Key Takeaways
- • Bitwise Industries co-founders Jake Soberal and Irma Olguin Jr. pleaded guilty on Wednesday in federal court to two counts each of wire fraud and conspiracy to commit wire fraud, resolving charges stemming from a $115 million fraud scheme.
- • The founders admitted to defrauding investors and lenders by transferring $18.5 million into Bitwise's bank account through false promises, according to federal prosecutors' court documents.
- • Bitwise Industries collapsed in spring 2025 following financial troubles, resulting in the furlough and layoff of over 900 employees and subsequent company bankruptcy.
- • The guilty pleas concluded litigation that had proceeded for more than one year following the company's collapse and the FBI's investigation into the fraud allegations.
- • The case represents a significant fraud in the Fresno-based tech sector, with broader implications for investor due diligence and corporate governance oversight in regional expansion ventures.
Summary
Bitwise Industries co-founders Jake Soberal, 38, and Irma Olguin Jr., 43, entered guilty pleas in federal court in Fresno, California on Wednesday to charges of wire fraud and conspiracy to commit wire fraud. The pleas resolved a $115 million fraud scheme that prosecutors alleged the two orchestrated against the company's investors and lenders. The guilty pleas marked the conclusion of litigation that had persisted for over one year following Bitwise's financial collapse and subsequent bankruptcy.
Federal prosecutors documented that Soberal and Olguin worked in concert to defraud Bitwise's financial stakeholders. Specifically, court documents allege that the co-founders transferred $18.5 million into Bitwise's bank account by making false promises to investors and lenders. The guilty pleas encompassed one count of wire fraud and one count of conspiracy to commit wire fraud for each defendant, to which both pleaded guilty before U.S. District Judge Dale A. Drozd.
Bitwise Industries, which had been positioned as a growth-stage technology company headquartered in Fresno, unraveled in spring 2025 due to mounting financial difficulties. The company's deterioration was severe: leaders first furloughed and then laid off more than 900 employees, creating significant hardship across its workforce. Employees reported operational chaos including bounced paychecks, which ultimately alerted authorities and triggered FBI investigation into the company's leadership.
In prior public statements, Soberal had articulated an ambitious vision for the company. A 2022 YouTube video showed him stating: "We began the work of Bitwise Industries here in our hometown of Fresno, California, with the hope of serving our community and advancing our city." The subsequent fraud and collapse represented a stark departure from those stated objectives. The case has drawn civil litigation from former employees seeking damages, with at least one class action lawsuit filed on their behalf addressing unpaid wages and related claims.
Federal prosecutors documented that Soberal and Olguin worked in concert to defraud Bitwise's financial stakeholders. Specifically, court documents allege that the co-founders transferred $18.5 million into Bitwise's bank account by making false promises to investors and lenders. The guilty pleas encompassed one count of wire fraud and one count of conspiracy to commit wire fraud for each defendant, to which both pleaded guilty before U.S. District Judge Dale A. Drozd.
Bitwise Industries, which had been positioned as a growth-stage technology company headquartered in Fresno, unraveled in spring 2025 due to mounting financial difficulties. The company's deterioration was severe: leaders first furloughed and then laid off more than 900 employees, creating significant hardship across its workforce. Employees reported operational chaos including bounced paychecks, which ultimately alerted authorities and triggered FBI investigation into the company's leadership.
In prior public statements, Soberal had articulated an ambitious vision for the company. A 2022 YouTube video showed him stating: "We began the work of Bitwise Industries here in our hometown of Fresno, California, with the hope of serving our community and advancing our city." The subsequent fraud and collapse represented a stark departure from those stated objectives. The case has drawn civil litigation from former employees seeking damages, with at least one class action lawsuit filed on their behalf addressing unpaid wages and related claims.
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