Andrew Adler, 31, of Greenwich, Connecticut, pleaded guilty Monday to conspiracy to commit wire fraud when he defrauded investors out of $20 million in loans made to the failed Fresno-based, start-up company Bitwise Industries, Acting U.S. Attorney Michele Beckwith announced.

Adler faces up to 20 years in prison and a $250,000 fine for the conspiracy to commit wire fraud charge. He is scheduled for sentencing on June 2.

According to court records, between December 2022 and May 2023, Adler and his business partner, David Hardcastle, 61, of Fresno, gave Bitwise about $20 million in hard money loans through their special purpose entity Startop Investments LLC.

Adler and Hardcastle used a syndicate of investors to fund the loans. They altered the original documents to make it appear as though Bitwise was obligated to pay significantly less interest on the loans than was true.

Forged Soberal’s Signature on Documents

They also forged the signature of Bitwise’s co-CEO, Jake Soberal, on the altered documents. This made the loans appear less risky and more appealing to  investors.

Adler and Hardcastle received tens of thousands of dollars in origination fees for the loans and stood to make millions more in secret profits from the higher, undisclosed interest rates had the loans been repaid.

Bitwise, however, did not repay the loans before collapsing, and the investors lost nearly all of their money. On Feb. 3, 2025, Hardcastle was arrested and arraigned on an indictment charging him with conspiracy to commit wire fraud and wire fraud.

The FBI investigated the case, which is being prosecuted by Assistant U.S. Attorneys Joseph D. Barton and Cody S. Chapple.

Hardcastle is charged in a separate indictment.

Sentencing of Bitwise CEOs

Soberal and co-CEO Irma Olguin Jr. were sentenced on Dec. 17, 2024, for defrauding tech investors of $115 million.

Both pleaded guilty to two wire fraud counts. 

Soberal received a sentence of 132 months, or 11 years. Irma Olguin Jr. was sentenced to 108 months, or nine years.