The Fresno based-tech company filed the bankruptcy petition Wednesday in the United States Bankruptcy Court for the District of Delaware, where the company was incorporated.
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Chapter 7 bankruptcy means the entity that intends to file for bankruptcy begins the process of liquidation of its assets to pay back its creditors.
The petition includes 17 pages and over 1,000 creditors including employees who are owed back pay, along with clients such as the Fresno Chaffee Zoo and the Central Valley Food bank.
The filing was signed off by Ollen Douglass, the interim president of Bitwise Industries, and company board members Mitchell D. Kapor and Paula Pretlow.
Mayor Jerry Dyer says the bankruptcy filing did not come as a surprise, but the amount of creditors did.
"At the end of the day what this demonstrates is it's all about the money and all about the assets and the liabilities and the employees are unfortunately the ones who are going to suffer the most," Dyer said.
The company is currently facing a federal criminal investigation, though the crimes being explored are still unclear.
Bitwise is also being sued by an investor for not repaying a more than $6 million loan.
Bitwise employees nationwide were furloughed on Memorial Day, then laid off a few weeks later.
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Stay with ABC30 for the latest details on this developing story.