The Securities and Exchange Commission (SEC) has charged the former co-CEOs of Bitwise Industries Inc., a private technology services startup based in Fresno, California, of falsifying financial documents while raising nearly $70 million from investors in 2022.

The allegations against Jake Sobral and Irma Olguin, Jr. reveal a deception scheme that ultimately led to the company’s downfall. The former co-CEOs are accused of making material misrepresentations and fabricating financial documents to mislead investors regarding Bitwise’s financial health.

The documents included falsified bank records and a fake audit report, both of which allegedly portrayed Bitwise as a thriving company with healthy financial performance. In fact, Bitwise has been chronically short of cash and struggling to maintain its operations.

According to the SEC, the consequences of the scheme became clear in May 2023 when Bitwise was unable to meet its payroll obligations and was forced to terminate its entire workforce.

The Securities and Exchange Commission (SEC) has charged the former co-CEOs of Bitwise Industries Inc., a private technology services startup based in Fresno, California, of falsifying financial documents while raising nearly $70 million from investors in 2022.

The allegations against Jake Sobral and Irma Olguin, Jr. reveal a deception scheme that ultimately led to the company’s downfall. The former co-CEOs are accused of making material misrepresentations and fabricating financial documents to mislead investors regarding Bitwise’s financial health.

The documents included falsified bank records and a fake audit report, both of which allegedly portrayed Bitwise as a thriving company with healthy financial performance. In fact, Bitwise has been chronically short of cash and struggling to maintain its operations.

According to the SEC, the consequences of the scheme became clear in May 2023 when Bitwise was unable to meet its payroll obligations and was forced to terminate its entire workforce.