From Furloughs to Federal Prison

Three years after Bitwise Industries furloughed its entire workforce of roughly 900 people over Memorial Day weekend 2023, the criminal chapter of the story is essentially closed. On July 17, 2024, co-founders and co-CEOs Jake Soberal and Irma Olguin Jr. each pleaded guilty in federal court to one count of wire fraud conspiracy and one count of wire fraud, admitting to a scheme that defrauded investors and lenders of roughly $115 million through falsified bank records and a fabricated audit report.

The Sentences

On December 17, 2024, Judge John C. Coughenour sentenced Soberal to 11 years and Olguin to 9 years in federal prison, each followed by 3 years of supervised release, and ordered restitution of more than $114 million. Both had asked for 5-year terms. The judge gave Soberal two extra years for a pointed reason: he was a licensed attorney and, in the court’s view, should have known better. The State Bar of California had already summarily disbarred him in October 2024.

Where They Are Now

The two reported to prison on March 18, 2025 — Soberal to USP Atwater in Merced County (his team had requested FCI Lompoc; the Bureau of Prisons had other ideas) and Olguin to FCI Victorville Medium I. Per Bureau of Prisons records reported in April 2025, their projected release dates are July 31, 2034 for Soberal and November 15, 2032 for Olguin. Restitution collection has begun: a tax lien was filed against Soberal in Fresno County in January 2025.

The Ripple Cases

The collapse kept prosecutors busy well after sentencing. Hard-money lenders David Hardcastle of Fresno and Andrew Adler of Greenwich, Connecticut were charged with altering Bitwise loan documents — including forging Soberal’s signature — to resell $20 million in loans at hidden interest spreads. Adler pleaded guilty in February 2025 and was sentenced on June 2, 2025 to 41 months. Hardcastle pleaded guilty in April 2026 in a combined case covering both the Bitwise loans and a separate Ponzi-style scheme, with investor losses totaling roughly $45 million; his sentencing is set for September 14, 2026.

Sources

DOJ: Bitwise founders sentenced • ABC30 sentencing coverage • GV Wire: prison placements • GV Wire: projected release dates • SJV Sun: disbarment • DOJ: Hardcastle plea