The criminally guilty former CEOs of Bitwise Industries have admitted to former employees they may never receive money owed to them.

And they said that an apology now “is too little, too late.”

That was one of several revelations that Irma Olguin Jr. and Jake Soberal made in a two-page letter posted on several of the pair’s social media sites on Thursday. The letter, addressed to “former teammates, investors, lenders, and your respective families,” lists wrongdoings and apologies for committing fraud to keep the company afloat.

Olguin’s attorney Daniel Olmos confirmed the authenticity of the apology, which came hours after former Bitwise employee and current GV Wire journalist Tony Haddad posted a column about his experience at the company.

Related Story: I Am a Former Bitwiser and This Is My Story

“We are deeply sorry,” the pair wrote.

On Wednesday, Olguin and Soberal pleaded guilty to two counts — wire fraud, and conspiracy to commit wire fraud — in federal court. They face prison time likely from five to 12 years, although the judge will make that determination. Sentencing takes place Nov. 6.

The federal government charged them with committing fraud by falsifying financial documents to investors and lenders. Soberal and Olguin admitted to bilking $115 million. They said “those will be the headlines.”

“What hasn’t been in the headlines is our apology — one you are owed, and that is long overdue.”

Related Story: Former Bitwise CEOs Answer ‘Guilty’ to Fraud Charges in Federal ...

Olguin, Soberal Break Silence

Olguin and Soberal continually refused to comment during their prior court appearances. After Wednesday’s change of plea hearing, attorneys on their behalf issued an apology statement via email.

In Thursday’s letter, the defendants said they lied in “egregious ways” to receive money to keep the company going. They kept employees in the dark about the dire financial health of the company, and did not understand the “collateral damage” they caused.

At the peak of Bitwise, I was often asked, “Irma, what would you tell your younger self, knowing what you know now?”

The answer is this: Learn to apologize with your whole heart, and don’t ever let go of the people who still love you when you mess everything up. pic.twitter.com/hoA3tgbZB9

— Irma L. Olguin Jr. (@irms) July 18, 2024

They said they said nothing because “we were asked to.” The letter did not say who made that request.

“It never felt right to us to say nothing to you. If we had shown up and said something, anything, at least … you’d have recognized that,” the letter said.

The Community’s Reaction

After the apology letter was posted on social media, former Bitwisers and the community had mixed reactions on social media:

• “Bitwise was a great idea that inspired many people to start companies and try code that won’t have had that chance otherwise. I hope that Fresno has more companies in the future that dream big but that can actually survive and thrive because it seemed like Bitwise was so close to long-term success.”
• “In a time when my daughter’s life was on the line and my entire world was falling apart, you stepped up as a person of kindness and generosity and that is something I will never forget.”
• “The biggest lesson was apologizing and not committing wire fraud and scamming people? Your company wiped out retirements and hard-working people’s checks that would bounce. You didn’t care about social justice, you were just greedy and exploited your colleagues until you got caught. This apology was just apart of your scam to get less of sentence. Have fun in federal prison!”
• “You intentionally and maliciously deceived investors for your own personal gain of greed and financially hurt the dedicated employees who trusted you as a leader, believed in your mission that were employed at your company who had families that depended on them.”
• “Nobody belongs in the situation you are more than you ❤️”
• “You state, “We lied to lenders and investors… to keep the company going, and keep our teammates employed.” This isn’t some noble sacrifice for Pete’s sake; it’s a calculated lie to cover your failures. You exaggerated Bitwise’s financial health with fake cash balances and revenues, claiming $44 million when it was less than $12 million and $143 million when it was minimal. (Just ask her about “passing the hat” — aka borrowing money from your employees to keep the lights on). Cut the act, this wasn’t about saving jobs although you can say it is and your apologists will keep chiming-in about it; it was frankly about maintaining a façade for your personal gain.”
• “Jake Soberal and Irma Olguin are both crooks, thieves, and ruthless money-hungry individuals who bilked so many employees, businesses, banks, and firms out of tens of millions of dollars!”
• “There is no forgiveness for “Serial Thieves.” You were deliberated and deceitful on your actions. And I am sure you would continue doing it, had you not get caught.”

The Crash and Burn of Bitwise

By avoiding a trial with the guilty plea, the exact narrative of how a company founded with such promise in 2013 crashed and burned 10 years later is yet to be revealed. Bitwise became the darling company championing underdog communities like Fresno, winning acclaim in the tech and venture capital world and from high-profile politicians such as Gov. Gavin Newsom. Olguin spoke at TED Talks.

A made-for-DEI story Olguin told — a gay Latina from the farming community of Caruthers who by sheer determination made it big — gathered attention from the media, and the political world.  At one point, Newsom appointed Olguin to the state’s community college board.

The company toward the end listed dozens of executives, with company insiders saying they earned well over six figures. Among those on the payroll were Olguin’s sister and brother, and reportedly other relatives.

Bitwise raised millions in investments — or so it said. To keep up the charade of a successful company, the Department of Justice said that Olguin and Soberal cooked the books, lied to investors and lenders, and even misled its own board of directors.

GV Wire exposed the financial problems of Bitwise in May 2023. The company did not pay its property taxes, and struggled to make payroll. In the ensuing weeks, the company furloughed and then laid off a reported 900 workers, and the board fired Olguin and Soberal before filing for bankruptcy.

Bitwise still faces civil lawsuits from former employees, investors and lenders. As part of their plea deal, Olguin and Soberal agreed to pay up to $115 million in restitution.

(GV Wire’s Anthony Haddad contributed to this article.)