Bitwise co-founder disbarred in California after felony fraud conviction
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- California disbars Jake Soberal after two-count wire fraud conviction
- Court orders $114.6 million restitution; Soberal sentenced to 11 years
- Bitwise collapse in May 2023 furloughed 900 employees amid fraud allegations
Jake Soberal, the co-founder of Bitwise Enterprises, has been disbarred by the State Bar of California for his felony conviction of two counts of wire fraud involving millions of dollars.
Soberal, along with co-founder, Irma Olguin Jr., was charged and convicted in scheme to defraud investors out of $115 million in a failing attempt to prop up their sinking company.
Soberal was sentenced to 11 years while Olguin received nine years. Both are currently in federal prisons.
Founded in 2013, Bitwise Industries made a splash in Fresno when it opened its doors. The start-up excited community members and investors with its plan to deliver technology training for underrepresented people, offer technology services for local businesses and lease space in its buildings for entrepreneurs and start-ups.
But as the business grew so did its need for financing.
At one point, Bitwise owned five buildings in Fresno, Bakersfield and Oakland — in which Bitwise held only a 5% ownership stake — as collateral for loans. An FBI agent’s affidavit also stated that Bitwise listed some of the buildings for sale. They’re also accused of forging board members’ signatures to secure loans.
When Bitwise collapsed in May 2023 it had 900 employees in several states. All were furloughed and eventually laid off.
As part of their sentencing, the judge ordered restitution of $114.6 million.
This story was originally published February 5, 2026 at 11:54 AM.
