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.