Please ensure Javascript is enabled for purposes of website accessibility
Judge Freezes Bitwise Assets in Lawsuit by Texas Partner
gvw_david_taub
By David Taub, Senior Reporter
Published 1 year ago on
June 1, 2023

Share

Getting your Trinity Audio player ready...

A Fresno County Superior Court judge issued a temporary restraining order freezing several assets of companies related to Bitwise Industries.

The action from Judge Jeffrey Hamilton was the result of a lawsuit filed Tuesday by NICbyte LLC, a Texas-based business partner of Bitwise entities.

The two firms collaborated to buy seven property in Fresno, Oakland, and Bakersfield. NICbyte held 95% interest in the joint company, and invested $43 million.

NICbyte accused the Bitwise entities — listed in the lawsuit as Wishon Row, LLC and several others wholly-owned subsidiaries — of taking out $30 million in loans, using the properties as collateral.

Wishon Row did so without permission, and in violation of the joint venture agreement, the lawsuit alleges. The Bitwise entities also listed four properties for sale without permission from its partner.

NICbyte’s attorneys had no comment. The listed corporate counsel for Bitwise could not be reached for comment. The company furloughed its employees on Monday.

A chart from court filings showing the relationship between Bitwise and NICbyte, LLC.

Accusations Made By Partner

Parren James

While it is still not clear who is behind NICbyte, in court filings, Parren James, a principal with San Francisco-based Grounded Capital, LLC, says he is “authorized to act on behalf” of NICbyte.

“Defendants’ intentional malfeasance and other wrongful behavior almost certainly is motivated to save or enrich Defendants’ affiliate — Bitwise Industries, Inc. — the financially troubled Fresno technology company,” James wrote in a court declaration.

James also alleged that on May 25, Bitwise co-CEO Jake Soberal made an “unannounced and unscheduled” visit to the residence of someone affiliated with NICbyte. It was not revealed who.

“This attempted personal visit was shocking and unwelcome in all respects. After the attempted visit and later that day, I spoke to Mr. Soberal over the phone and even during that call, Mr. Soberal concealed and failed to disclose the loans or recorded trust deeds,” James said in the declaration.

James said he “does not have any knowledge” of where the $30 million loan went.

Temporary Order Granted

The lawsuit asked the judge for the temporary restraining order to freeze seven bank accounts at Central Valley Community Bank; stop the sale of the State Center Warehouse at 747 R Street in Fresno, and three properties in Bakersfield; turn over books and other documents; prevent damaging the buildings or other documents; and set an injunction bond of $10,000.

Hamilton granted the TRO at a Wednesday afternoon ex parte (meaning one side brings the action and is required to attend) hearing. It is not clear if any Bitwise representative was present.

The bank account of the main company, BW Industries, Inc., was not frozen by Hamilton’s ruling against the plaintiff’s request.

The TRO will run through June 17.

Attorneys for NICByte notified Soberal and Bitwise co-CEO Irma Olguin Jr. a day head of the hearing.

The Fresno Bee first reported the story of the TRO.

Read the Judge’s TRO

RELATED TOPICS:

DON'T MISS

Coffee Pot Fire Is 13% Contained but Grows to 10,164 Acres

DON'T MISS

CA Lawmakers Pass Landmark Bills to Atone for Racism, but Hold Off Funding

DON'T MISS

49ers Rookie WR Ricky Pearsall Shot in Attempted Union Square Robbery

DON'T MISS

Will Gov. Newsom Call a Special Session to Deal With Gas Prices?

DON'T MISS

Red Wavers Go the Extra Mile to Make It a Party Before the ‘Dogs Play Michigan

DON'T MISS

Voting Rights Under Fire in Texas: Over a Million Purged From Rolls, ACLU Warns

DON'T MISS

Bettors Banking on Eagles Resurgence, Cowboys Regression as NFL Season Begins

DON'T MISS

Abandoned Poodle Mix Adam Survives the Wild and Seeks a Forever Home

DON'T MISS

Labor Day Quiz: What Did Elvis Do Before He Was the ‘King of Rock ‘n’ Roll’?

DON'T MISS

Why Black Students Are Still Disciplined at Higher Rates: Takeaways From AP’s Report

UP NEXT

Abandoned Poodle Mix Adam Survives the Wild and Seeks a Forever Home

UP NEXT

Valley PBS Taps Mollison to Be New President/CEO

UP NEXT

Sherrone Moore Starts New Era as No. 9 Michigan Hosts Upset-Minded Fresno State

UP NEXT

Stock Market Today: Wall Street Rises as Inflation Report Confirms Price Increases Are Cooling

UP NEXT

Big Fresno Fair Announces Final Two Acts for 2024 Concert Series

UP NEXT

Valley Children’s Says Its Planned Shopping and Living ‘Village’ Will Pay Dividends

UP NEXT

OpenAI in Talks for Deal That Would Value Company at $100 Billion

UP NEXT

Bulldogs Will Unveil Helmet Communication in Season Opener at the Big House

UP NEXT

Coffee Pot Fire Grows to More Than 5,500 Acres in Tulare County

UP NEXT

Powerful Testimony From Korn Guitarist and Bulldogs Watch Party Highlight the Weekend

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

Will Gov. Newsom Call a Special Session to Deal With Gas Prices?

2 hours ago

Red Wavers Go the Extra Mile to Make It a Party Before the ‘Dogs Play Michigan

3 hours ago

Voting Rights Under Fire in Texas: Over a Million Purged From Rolls, ACLU Warns

10 hours ago

Bettors Banking on Eagles Resurgence, Cowboys Regression as NFL Season Begins

13 hours ago

Abandoned Poodle Mix Adam Survives the Wild and Seeks a Forever Home

14 hours ago

Labor Day Quiz: What Did Elvis Do Before He Was the ‘King of Rock ‘n’ Roll’?

15 hours ago

Why Black Students Are Still Disciplined at Higher Rates: Takeaways From AP’s Report

15 hours ago

Top Brazilian Judge Orders Suspension of X Platform in Brazil Amid Feud With Musk

1 day ago

Trump Reverses Course, Opposes Florida Abortion Rights Measure After Conservative Backlash

1 day ago

How a Real Estate Boom Drove Political Corruption in Los Angeles

1 day ago

Coffee Pot Fire Is 13% Contained but Grows to 10,164 Acres

As of 7 p.m. Saturday, the Coffee Pot Fire in Tulare County had grown to 10,164 acres with 13% containment, incident managers said. It is be...

9 mins ago

A view of the Coffee Pot Fire in Tulare County California
9 mins ago

Coffee Pot Fire Is 13% Contained but Grows to 10,164 Acres

Assemblymember Isaac Bryan, right, talks to members of Coalition for a Just and Equitable California about two reparations bills in the rotunda on the last day of the legislative year Saturday, Aug. 31, 2024, in Sacramento, Calif. (AP Photo/Tran Nguyen)
1 hour ago

CA Lawmakers Pass Landmark Bills to Atone for Racism, but Hold Off Funding

Police officers secure the area and investigate the scene of a shooting at Union Square in San Francisco, Saturday, Aug. 31, 2024. (Santiago Mejia/San Francisco Chronicle via AP)
2 hours ago

49ers Rookie WR Ricky Pearsall Shot in Attempted Union Square Robbery

Gov. Gavin Newsom speaks at an event in anticipation of signing a bill on his proposed oil profit penalty plan in Sacramento on March 28, 2023. (CalMatters/ Miguel Gutierrez Jr.)
2 hours ago

Will Gov. Newsom Call a Special Session to Deal With Gas Prices?

Fresno State dancers cheer on the Bulldogs against Michigan, Saturday, Aug. 31, 2024, in Ann Arbor, Michigan.
3 hours ago

Red Wavers Go the Extra Mile to Make It a Party Before the ‘Dogs Play Michigan

10 hours ago

Voting Rights Under Fire in Texas: Over a Million Purged From Rolls, ACLU Warns

13 hours ago

Bettors Banking on Eagles Resurgence, Cowboys Regression as NFL Season Begins

A black poodle's face with his tongue sticking out
14 hours ago

Abandoned Poodle Mix Adam Survives the Wild and Seeks a Forever Home

Search

Send this to a friend