Ex-Bitwise President refusing to turn over company laptop

A top Bitwise Industries executive is pushing back on evidentiary requests from the trustee charged with managing the company’s bankruptcy.

Former Bitwise Industries president, Bethany Mily, is refusing to hand over her company-issued laptop computer to the court-appointed trustee overseeing the company’s bankruptcy case in Delaware.

Mily’s legal counsel claims that the laptop may contain information subject to attorney-client privilege.


Driving the news: The bankruptcy trustee, Jeoffrey Burtch, responded to Mily’s request to seek coverage under a $5 million business insurance policy purchased by Bitwise prior to its collapse.

  • Burtch wants access to Mily’s laptop as part of the investigation into the factors that led to Bitwise’s demise and to identify any available assets to satisfy the companies’ debts.
  • Burtch argues that the company-issued laptop remains the property of the Bitwise bankruptcy estate and that Mily is required to deliver it to the trustee.
  • Burtch is willing to accept the computer under a court order that clarifies the handover does not waive attorney-client privilege for Mily.

The backstory: According to Bitwise’s employee handbook, Mily should not have expected that information on the laptop would be kept private, as she was specifically advised that it was not.

  • Multiple sources have confirmed that state and federal agencies, including the FBI, are investigating possible wrongdoing related to the financial meltdown of Bitwise.
  • Bitwise Industries and four other associated entities have stated liabilities of over $511 million, along with additional claims totaling $25.5 million from creditors.
Related Posts