Bitwise Founders Sentenced to Prison for $115 Million Fraud

Jake Soberal and Irma Olguin, Jr. the founders and leaders of failed start-up Bitwise Industries, were sentenced to 11 years and nine years in prison, respectively, for defrauding people out of approximately $115 million, the Justice Department announced Tuesday.

According to the DOJ, Olguin, Jr. and Soberal fabricated financial information for its board and for investor materials and doctored audit reports to make it appear as though Bitwise was generating revenues and turning a profit. They also altered bank statements and forged bank representatives’ signatures on bank correspondence to inflate the company’s cash balances. They did so to convince ...