Bitwise Asset Management has officially stated that it is not associated with California-based tech startup Bitwise Industries, which is currently facing issues with the regulator.
This announcement came after the SEC filed charges against the startup’s co-founders, Jake Soberal and Irma Holguin, for allegedly conspiring to commit fraud.
The SEC claimed that the two had deceived investors about the financial state of the company.
The prosecutor’s office stated that the defendants could have simply acknowledged the failure of Bitwise’s business model, but instead chose to use lies to attract over $100 million in fraudulent funds for a failing enterprise.
It was also revealed that top executives had falsified bank statements and provided false information to the board of directors.
Despite their claims of financial strength, the company went bankrupt earlier this year. The similarity in names between the startup and Bitwise Asset Management has caused confusion on social media, with some posts mistakenly using the asset manager’s logo.