"From 2022 through 2023, Hardcastle and his business partner loaned Bitwise $20 million in high-interest loans from their company, 'Startop Investments LLC.' After forging the signature of Bitwise's co-CEO, they sold the fraudulent loans to investors, who believed they would be receiving loans that were much less risky than they actually were."
"The two businessmen, who were already receiving tens of thousands of dollars in origination fees for the loans, were poised to make millions more if the loans had been fully repaid. One loan to Bitwise involved an undisclosed secure interest reserve of about $700,000."
"As a result, the investors in the loans lost nearly all of their money. Once valued at $600 million, Bitwise Industries was founded as a coding boot camp in 2013 and promised to help bring tech jobs to underserved communities."
In 2024, the CEOs of Bitwise Industries confessed to stealing over $100 million from investors. David Hardcastle, 61, pleaded guilty to conspiracy to commit wire fraud, resulting in $45 million in losses. Hardcastle and Andrew Adler loaned Bitwise $20 million through fraudulent high-interest loans, forging signatures to mislead investors. They misused a $700,000 collateral account to fund their own company. The collapse of Bitwise in 2023 led to significant investor losses, as the company was once valued at $600 million and aimed to create tech jobs in underserved areas.
Read at SFGATE
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