Bitwise Board claims CEOs “told lie after lie to cover up previous lies” generating “massive” fraud

Bitwise’s Board of Directors alleged CEOs Jake Soberal and Irma Olguin enriched themselves while perpetrating a fraud and took out a $5 million insurance policy one month before the firm’s collapse.

Bitwise Industries’ former co-CEOs Jake Soberal and Irma Olguin Jr. have been accused of misleading and defrauding the Bitwise Board of Directors, according to a fresh round of filings in a Delaware Bankruptcy Court.

The documents allege that the two CEOs lied and schemed “to enrich themselves and avoid responsibility for their unethical, self-dealing actions for as long as possible.”


Deep dive: The accusations include deliberately misrepresenting the company’s financial condition and engaging in financial transactions without the knowledge of the board, such as taking out a $5 million insurance policy before the company collapsed.

  • The legal filing with the U.S. Bankruptcy Court claims that Soberal and Olguin actively misled employees, investors, lenders, partners, and the Board of Directors by concealing material information.
  • Bitwise filed for bankruptcy on June 28 after collapsing a month earlier, leading to hundreds of employees losing their jobs.
  • Proietti and Douglas have called for the right to file a lawsuit in Fresno County Superior Court against the former CEOs and an insurance company, which they claim will cover the company but not the CEOs.
  • Additional claims against the former CEOs include the falsification of documents and paying themselves lavish salaries and benefits while misrepresenting the financial condition of the company.

More money, more problems: Proietti, who lent money to Bitwise, is owed $10 million from a previous loan based on false financial statements from Soberal.

  • Douglass, the interim president of the company after the CEOs’ dismissal, claims to be an innocent victim of Soberal and Olguin’s schemes.
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