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Former Bitwise Employees Settle for $20 Million: Fresno Attorney
David Taub Website photo 2024
By David Taub, Senior Reporter
Published 7 months ago on
November 20, 2024

Fresno attorney Roger Bonakdar estimates nearly 700 former Bitwise employees could be entitled to up to $15,000 each following the announced settlement of a class action lawsuit. (GV Wire/Paul Marshall)

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Nearly 18 months after Bitwise Industries went out of business, its former employees settled with the remnants of the company for $20 million.

Fresno attorney Roger Bonakdar, representing a group of employees who lost their jobs, said any former Bitwise employee could collect. He estimates nearly 700 employees could be entitled to up to $15,000 each.

“It’s a landmark decision,” Bonakdar said Wednesday. “Everyone should be made whole on what was stolen from them.”

Payments could come by early next year, he said.

“I’m truly happy for my clients. Many of the clients have reached out this morning expressing their satisfaction. And really the closure that comes with it,” Bonakdar said.

The settlement was filed today in a Delaware bankruptcy court. Read the bankruptcy settlement here.

Criminal Former CEOs not Involved

“It’s a landmark decision … Everyone should be made whole on what was stolen from them.”Attorney Roger Bonakdar

Former Bitwise co-CEOs Jake Soberal and Irma Olguin Jr. are not directly involved in the settlement. Federal investigators said their malfeasance led to the company’s destruction. Instead of being honest about Bitwise’s financial troubles, Soberal and Olguin lied to its board of directors, lied to investors, and falsified financial records.

The federal Department of Justice charged Soberal and Olguin with fraud. They eventually pleaded guilty, and are scheduled to be sentenced Dec. 17 at 8:30 a.m. at the Fresno federal courthouse.

After GV Wire broke the story of the company’s financial problems in May 2023, Bitwise furloughed its entire staff on Memorial Day, and laid them off a few weeks later.

The Bitwise board of directors fired Soberal and Olguin in June 2023, and the company filed for bankruptcy a few weeks later.

Bankruptcy Slows Down Litigation

Two separate set of employees filed class action lawsuits — the Garza class filed in Fresno County Superior court, and the Nunn class filed in federal court in Fresno.

Those were two of several lawsuits Bitwise and its several related companies faced from employees, investors, and business partners. The bankruptcy automatically halted the lawsuits.

The employee lawsuits accused Bitwise of violating state and federal regulations requiring notification of layoffs. Bitwise also bounced payroll checks.

The current negotiations with employees began in earnest this past January.

“The reason the case settled is how much work we put into establishing the exposure for these entities and the directors. An immense amount of work, thousands of hours of time went through combing through the terabytes of data and documents to hold Bitwise accountable.” Bonakdar said.

The settlement holds members of Bitwise’s board of directors and its insurance carriers responsible. The board includes Mitchell Kapor, Paula Pretlow, Ollen Douglass, and Joseph Proietti — all venture capitalists to some degree.

Who Is Paying for the Settlement?

Former Bitwise president Bethany Mily is involved in the settlement, although she will make no direct payments.

The size of the class is not exactly known. Bonakdar said bankruptcy officials are still determining that number.

Bonakdar urges any former employee who is part of the claim to reach out to him through his Facebook page to make sure they are included.

The settlement allows attorneys’ fees of up to 30%, or $6 million.

Bonakdar said recovery money in a class action lawsuit against a bankrupt company is unusual.

“What we’ve done here is is truly exceptional. These people deserve it. We’re very proud of all the work that went into it, and we’re appreciative for the faith and confidence of the community to help out our friends and neighbors,” Bonakdar said.

The breakdown of where the settlement money comes from:

  • $5 million from Great American insurance policy
  • $5 million from director Mitchell Kapor
  • $4.5 million from Scottsdale insurance policy
  • $3.425 million from other Kapor entities
  • $2 million from Hanover TPL insurance police
  • $75,000 from Motley Fool Ventures (affiliated with director Ollen Douglass)

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David Taub,
Senior Reporter
Curiosity drives David Taub. The award-winning journalist might be shy, but feels mighty with a recorder in his hand. He doesn't see it his job to "hold public officials accountable," but does see it to provide readers (and voters) the information needed to make intelligent choices. Taub has been honored with several writing awards from the California News Publishers Association. He's just happy to have his stories read. Joining GV Wire in 2016, Taub covers politics, government and elections, mainly in the Fresno/Clovis area. He also writes columns about local eateries (Appetite for Fresno), pro wrestling (Off the Bottom Rope), and media (Media Man). Prior to joining the online news source, Taub worked as a radio producer for KMJ and PowerTalk 96.7 in Fresno. He also worked as an assignment editor for KCOY-TV in Santa Maria, California, and KSEE-TV in Fresno. He has also worked behind the scenes for several sports broadcasts, including the NCAA basketball tournament, and the Super Bowl. When not spending time with his family, Taub loves to officially score Fresno Grizzlies games. Growing up in the San Francisco Bay Area, Taub is a die-hard Giants and 49ers fan. He graduated from the University of Michigan with dual degrees in communications and political science. Go Blue! You can contact David at 559-492-4037 or at Send an Email

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