FRESNO, Calif. (KERO) — Technology and cryptocurrency business Bitwise Industries announced that it had "terminated" two company higher-ups and appointed a new president following a notice that all Bitwise employees would be furloughed.
Employees were notified of the furloughs on Tues, May 30. Ollen Douglass, a board member of Bitwise who was named Interim President of Bitwise following the furloughs on June 1, claimed that the furloughs were a surprise to employees and the non-management board.
"Unfortunately, the non-management board and I, like many of you, are finding out that the picture the company consistently communicated orally and in presentations, was not an accurate picture of the company’s financial health," said Douglass. "It is heartbreaking and disappointing on multiple levels, as you know."
According to Douglass, co-founder of the company Jake Soberal and CEO Irma Olguin Jr were both fired. The Bitwise board is "engaging experts to help us understand the full extent of what led to these current circumstances and events."
Douglass gave a separate statement regarding the furlough of all employees, as well as on Soberal and Olguin, on Sat, June 3.
"It was an incredibly difficult decision to suspend operations at Bitwise Industries and furlough the hardworking team members. The Board of Directors was recently made aware of the company's cash deficit by management and took immediate action as a result," said Douglass. "The Board of Directors is taking this matter very seriously. We are committed to determining the root cause and will continue to take swift action."
According to the statement, Douglass will "oversee the investigation" of the money mismanagement by Soberal and Olguin, "drawing on his background in auditing and experience as a former chief financial officer."
