Bitwise co-founders officially plead guilty to charges

A guilty plea in federal court on Wednesday as Irma Olguin Jr. and Jake Soberal admitted to fraud in the case involving Bitwise Industries, the collapsed Fresno tech company they used to run.

"We began the work of Bitwise Industries here in our hometown of Fresno, California, with the hope of serving our community and advancing our city," Soberal said in a 2022 YouTube video.

But after a multi-state expansion, the company unraveled due to financial troubles last spring. Leaders furloughed and ultimately laid off more than 900 employees, like Jenn Guerra.

"Things that were happening, like our paper checks, bounced checks, and then this chaos," she told Action News earlier this month.

The company's collapse caught the attention of the FBI.

In court documents, federal prosecutors say Olguin and Soberal worked together by trying to defraud Bitwise's investors and lenders.

In one charge, the government says the two transferred $18.5 million into Bitwise's bank account, taking the money by making false promises.

Olguin and Soberal had fought the charges until Wednesday when their attorneys and the prosecutors told the federal judge the sides had reached a deal.

"They entered guilty pleas to two felony counts. One count of wire fraud and another count of conspiracy to commit wire fraud," attorney Roger Bonakdar said outside the courthouse. He is not involved in the federal case but represents some former employees in a civil class action lawsuit.

Action News was there as Olguin and Soberal left the courthouse.

"Jake and Irma, what's your message to the Bitwise employees who say they still haven't been paid? Why no comment, Irma? Why did you decide to plead guilty in court today?" Olguin and Soberal said nothing.

The two could now face up to 40 years in federal prison and $500,000 in fines. They have also agreed to pay up to $115,000,000 in restitution.

"I don't believe they're above the law," Guerra said Wednesday. "They deserved to be sentenced just like anyone else."

Sentencing will come on November 6, when the two co-founders are due back in court.

Soberal and Olguin cannot change their plea based on the judge's final sentence.

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