Read Bitwise CEOs’ first statement since Fresno startup folded: ‘Abused and broken’ trust

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The founders of Bitwise Enterprise posted a 2-page apology letter on social media Thursday, blaming themselves for the lies and deception that caused the company’s downfall and the loss of 900 jobs.

Jake Soberal and Irma Olguin founded Bitwise in 2013 as a hub for technology education and innovation, but their dreams of creating a viable company came crashing down in May 2023.

Federal prosecutors accused the duo of misleading investors to the tune of $115 million in an attempt to keep Bitwise’s doors open.

The two were charged with conspiracy to commit wire fraud and wire fraud. They pleaded guilty in U.S. District Court on Wednesday and await sentencing on Nov. 6.

They say in their letter that they have wanted to publicly apologize to their former employees, investors, lenders and respective family members. But on advice of their legal counsel they refrained.

Now, with a prison sentence looming, their lawyers are allowing it.

In the letter, Soberal and OIguin profusely apologize for their actions and suggest they were motivated by trying to keep the operation running.

“We wanted so badly to see Bitwise succeed, to see Fresno succeed, and to see our teammates succeed. That gave rise to the false belief that those things were only possible if Bitwise kept going. Over a critical period of time with much on the line, we absolutely, unequivocally, and irreversibly chose the wrong way. We are deeply sorry.” according to the letter.

They acknowledge having broken the public’s trust.

“We are sorry to have failed in our leadership of the company that you loved. We are sorry for the money that you entrusted to us that you may never get back. We are sorry for the unique, real, and painful stories of struggle that our wrong actions caused, most of which we may never even hear about. For many, especially those we were closest to, you may be thinking this apology is too little, too late.”

The Fresno Bee received a copy of the letter. It also was posted on Soberal and Olguin’s social media pages, attracting comments, positive and negative.

It’s unclear how many years Soberal and Olguin will serve in prison. Federal prosecutors have recommended they be given the “low end” of the sentencing guide. The maximum is 40 years in prison.

“The next thing is that we will each almost certainly be sentenced to serve time in federal prison. We don’t know for how long, or where. That part will come soon enough. Until then, we are both here. Here to listen and make space to honor your feelings. If information can help create clarity, and clarity can help create peace, sign us up for that.”