Man admits to defrauding investors with loans made to Bitwise
FRESNO, Calif. (KFSN) -- A 31-year-old man admitted he defrauded investors with loans made to the failed Fresno-based startup company -- Bitwise.
Andrew Adler pleaded guilty on Monday to conspiracy to commit wire fraud.
He and his business partner are accused of luring investors and giving Bitwise about $20 million in loans.
Court records say the two altered the original loan documents and forged the signature of Bitwise Co-CEO, Jake Soberal, to make the loans appear less risky to investors.
The partners are also accused of investing in another company with interest reserves meant to pay investors back if the borrower failed to repay the loan.
RELATED: Bitwise founders sentenced to spend years in prison for wire fraud crime
When Bitwise collapsed in 2023, the investors lost nearly all of their money.
Adler is set to be sentenced on June 2.
He faces 20 years in prison, plus a $250,000 fine.
His business partner, David Hardcastle, is charged in a separate indictment, and those charges remain pending.
