Bitwise insists it has ‘no connection’ to the startup facing SEC charges
Crypto index fund manager Bitwise Asset Management has emphasized that it has nothing to do with the tech startup Bitwise Industries, which is currently being sued by the United States Securities and Exchange Commission.
Today Fresno, California-based private technology services startup Bitwise Industries Inc. We filed suit against former CEOs Jake Sobral and Irma Holguin Jr. for misleading investors about the company's finances.
— US Securities and Exchange Commission (@SECGov) November 9, 2023
On November 9, Irma Holguin, Jr. and Jake Sobral, the founders of Bitwise Industries, were charged with conspiring to commit wire fraud and taking $100 million from various investors despite the failure of the business model. The SEC accused the pair of falsifying documents to deceive investors and raise money.
The fact that the company's name is similar to a crypto fund manager has caused some confusion, with some posts on social media using the Bitwise Asset Management logo while talking about Bitwise Industries. However, the manager of the crypto index fund explained that the two are not related.
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On November 10, Bitwise Asset Management insisted in a statement that they currently have nothing to do with the company requesting the SEC charges. They wrote:
“San Francisco-based Bitwise Asset Management, Inc., the largest crypto index fund manager in the US, has no affiliation with, and is no longer affiliated with, the defunct Bitwise Industries, a former technology company in Fresno, California,” he said.
Bitwise Asset Management offers a variety of crypto-related products for investment, including the Ethereum Futures ETF. In addition, the company is one of the asset managers seeking approval for the spot Bitcoin ETF. On the other hand, Bitwise Industries seems to be a technology company that has never worked with digital assets.
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