Bitwise Has No Connection With Now-Defunct Bitwise Industries
Crypto fund manager Bitwise Asset Management has insisted that it “has no relationship” with the now-defunct technology company Bitwise Industries.
The reply comes amid a probe conducted by the US Securities and Exchange Commission (SEC) on Bitwise Industries. The regulator accused the tech firm and its former co-CEOS for misleading investors about the company’s finances.
Today we announced charges against Jake Soberal and Irma Olguin, Jr., the former co-CEOs of Fresno, California-based private technology services startup Bitwise Industries Inc., for misleading investors about the company’s finances.
— U.S. Securities and Exchange Commission (@SECGov) November 9, 2023
The SEC charges on Bitwise Industries include wire fraud and amassing $100 million from investors despite its failing business model. The defendants allegedly falsified the company bank account of having $23.4 million, when it had only $325,100, SEC noted.
However, this raised doubts about the authenticity of the crypto asset manager Bitwise, which has an identical name to the beleaguered tech firm. Social media posts swapped the logos of both companies, projecting that Bitwise Asset Management is under SEC scrutiny.
Following such reports, crypto firm Bitwise clarified to its users that it has no links with the tech provider.
“San Francisco-based Bitwise Asset Management, Inc., the largest crypto index fund manager in America, has no relationship with, and has never had a relationship with, the now-defunct Bitwise Industries, a former technology company based in Fresno, California.”
Bitwise in the ETF Race
Meanwhile, Bitwise crypto asset manager recently updated its application for a Bitcoin Exchange-Traded Fund (ETF), seeking to address SEC’s concerns. Bitwise’s amendment to its ETF application presented a compelling new dimension to its broader pursuit of the rare product.
The firm also re-filed its application for a spot Bitcoin ETF in June. This opened the flood-gates for several ETF applications, including from prominent asset manager BlackRock.
Furthermore, Bitwise filed for the withdrawal of its “Bitcoin and Ethereum Market Cap Strategy ETF” application, in August. The withdrawal came as a shock to the community, given the company’s commitment to pursuing ETF approval.