Bitwise Industries Files for Bankruptcy | Goodman & Nekvasil P.A., May Recover Investor Losses
Goodman & Nekvasil, P.A. Investigation of Bitwise Industries
Bitwise Industries files for Bankruptcy on June 28th, 2023.
The voluntary Chapter 7 Bankruptcy includes approximately $70 million of investor funds in Bitwise Industries, Inc.
SEC Obtains Judgments Against Former CEOs of Bitwise Industries
On January 31, 2024, the U.S. District Court for the Eastern District of California entered judgments against Jake Soberal and Irma Olguin, Jr., the former co-CEOs of Fresno, California-based private technology services startup Bitwise Industries Inc., in an action alleging that they misled investors about the company’s finances.
Bitwise Industries, Inc. and the Risks of Tech Startups
Many investors are not fully aware of the problems and risks associated with high risk, tech startups when they purchase them.
Investments are often riskier and more complicated than traditional investments. These funds are only suitable for high net worth, sophisticated investors.
Liquidity Issues and High Sales Commissions
Startups can face several liquidity issues due to their unique characteristics and structure.
Another problem often associated with startups is the high sales commissions brokers typically earn for selling them. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market.
Unfortunately, in many cases, the high sales commission may influence unsuitable investment recommendations.
Broker Due Diligence
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim.
If you believe that the investments in Bitwise Industries may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action.
There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. If we don’t recover money for you, we charge no attorney’s fee.
Goodman & Nekvasil, P.A. has recovered more than $400 million on behalf of victimized investors. If you lost money on investments in unsuitable investments and would like your case evaluated by a securities attorney, please contact us.