Two weeks ago Bitwise co-founders Irma Olguin Junior and Jake Soberal pleaded guilty in the company's $115 million fraud scheme.
RELATED: Bitwise co-founders officially plead guilty to charges
Federal prosecutors say Olguin and Soberal worked together to defraud investors and lenders.
The scheme continued until May of last year when Bitwise ran out of money and the company collapsed.
RELATED: What is Bitwise? Explaining the rise and fall of the Fresno-based tech company
Lawyers representing the roughly 900 employees that were laid off say they reached a settlement of approximately $20 million.
"It's important for folks to know that class actions usually take years, the fact that we got this settlement in place this quickly it's phenomenal it's really record setting but there's still a lot left to do,'' Roger Bonakdar, the lawyer representing former Bitwise Employees, said.
Bonakdar hopes to start distributing settlement funds by the end of the year.
The Bitwise co-founder's are due back in court on November 6 for sentencing.
The two could now face up to 40 years in federal prison and half a million dollars in fines.