Jake Soberal and Irma Olguin Jr. leave a federal courtroom In November 2023. Photo by Estela Anahi Jaramillo

Jake Soberal and Irma Olguin Jr., the former co-CEOs of Bitwise Industries, each face about a decade in federal prison for their roles in a $115 million wire fraud scheme leading to the collapse of the tech/real estate company. 

Judge John C. Coughenour sentenced Soberal to 11 years and Olguin to nine years of incarceration. 

Both Soberal and Olguin pleaded their case to Coughenour, urging him to give them a minimum five-year sentence. In his statement, Soberal cited his Christian values and community service as reasons to shorten the sentence. He also mentioned how his entire identity was tied to the success of Bitwise Industries. He added that he thoroughly enjoyed having the power and control and let it get the best of him.  

The pair pleaded guilty back in July.

Since the Bitwise founders were hit with federal charges in 2023, Soberal said he has felt immense pain whenever he lies — no matter how small the lie.

In a sentencing memo, Soberal said he used alcohol to cope with the pressure of Bitwise’s collapse. He intends to seek a probationary program as treatment before he reports for his sentence by March 18, 2025.

After Soberal spoke, several victims of the fraud shared their stories on how Soberal and Olguin took advantage of their trust. Several victims spoke on how the future of their children is now in jeopardy due to the acts of the former Bitwise CEOs. One victim, 75-year-old farmer Jim Maxwell, talked about how he’ll have to continue working due to being victimized by Soberal and Olguin’s scheme.  

After the victims spoke, Olguin, who identifies as queer, shared her comments. The main emphasis of her statement was her regret for painting women of the LGBTQ+ community in a negative light. 

Towards the end of her statement, Olguin said Bitwise Industries’ downfall is a “traumatizing end to what was once a beautiful story.” 

When the announcement of the sentence length was announced, the victims appeared satisfied with the judge’s decision. Olguin’s family was visibly distraught when they left the courtroom.

Coughner, who is based in Washington state, implied that Soberal received a longer sentence than Olguin due to his past as an attorney. 

Each will have 90 days before they have to report to U.S. marshals to begin their prison sentences.