Bitwise Industries file photo

Acting U.S. Attorney Michele Beckwith announced Monday that Andrew Adler, a 31-year-old from Greenwich, Connecticut, pleaded guilty to conspiracy to commit wire fraud in a $20 million loan scheme involving the failed Fresno-based startup Bitwise Industries. 

Between December 2022 and May 2023, Adler and his business partner, 61-year-old David Hardcastle of Fresno, provided Bitwise with $20 million in hard money loans through Startop Investments LLC. The pair misled investors by changing documents to make Bitwise’s obligations appear lower than they actually were. They also forged the signature of Bitwise’s then-CEO, Jake Soberal. 

Adler and Hardcastle received tens of thousands in origination fees and stood to make millions in undisclosed profits, federal prosecutors say. However, Bitwise collapsed before repaying the loans, resulting in substantial losses. 

Hardcastle was arrested on Feb. 3 and faces conspiracy and wire fraud charges. If convicted, he could face up to 20 years in prison and a $250,000 fine per charge. Adler is set for his sentencing on June 2 and faces up to 20 years in prison and a $250,000 fine. 

Assistant U.S. Attorneys Joseph D. Barton and Cody S. Chapple are prosecuting the case following an FBI investigation. Hardcastle is presumed innocent until proven guilty.