Deal with SEC bars ex-Bitwise chief Soberal from work tied to securities

Jake Soberal, the lawyer and co-CEO of Bitwise Industries, played a major role in developing the complicated web of securities fraud that led to the company’s collapse.

Bitwise founder and former co-CEO Jake Soberal has been barred from working with a company that issues securities. 

The ruling comes from a settlement that Soberal and fellow Bitwise former co-CEO Irma Olguin Jr. agreed to on Feb. 1 in the Security and Exchange Commission’s case against Bitwise. 


The big picture: Per the SEC, Soberal and Olguin have consented to the entry of the judgements, without admitting or denying the SEC’s allegations. 

  • The SEC has accused the pair of misleading investors and lying about the company’s finances. 
  • Soberal and Olguin had agreed to the entry of a partial judgment last November. 
  • Soberal will be unable to start a company that deals with securities. In other words, he is banned from starting a company similar to Bitwise. 
  • He has also waived the right to a defense as part of the settlement. 

The backstory: The SEC’s allegations center on $70 million that Soberal and Olguin raised from investors in 2022. 

  • The duo are accused of creating falsified bank records and a fake audit report to show to investors. The records showed inflated cash balances and higher revenues. 
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