Growing Problems: Bitwise now accused of not paying city taxes since 2021, major lawsuit

FRESNO, Calif. (FOX26) — Troubles continue to mount for Fresno-based tech incubator Bitwise Industries.

Wednesday afternoon, Fresno Mayor Jerry Dyer sent a letter to Bitwise co-founders Jake Soberal and Irma Olguin saying it was brought to his attention that Bitwise has not paid City business taxes since September of 2021.

In the letter, Dyer is giving the company 30 days to provide gross receipts and adds: “Failure to do so may result in further action against Bitwise and its Board of Directors.”

This comes a day after Houston-based investment firm Nicbyte filed a $33 million dollar lawsuit against Bitwise and a group of its investors, saying they cannot be trusted.

The lawsuit, filed in Fresno County Superior Court, says Nicbyte entered into a $35 million dollar venture agreement with Bitwise less than a year ago.

As part of the deal, Nicbyte would contribute 95 percent of the capital to buy five buildings—three in Bakersfield, one in Fresno, and one in Oakland.

In return, Bitwise would manage day-to-day operations, including collecting rent from tenants, managing renovations, preparing financial reports, and ensuring tenants timely paid property taxes.

Instead, Nicbyte claims Bitwise took out close to $30 million in loans secured by the properties—without its knowledge.

What’s more, the lawsuit claims Bitwise listed four of the properties (two in Bakersfield, and the Fresno and Oakland locations) for sale—again, without notifying Nicbyte.

As FOX26 News reported Tuesday, workers received an email stating it was furloughing its entire workforce and that their last paycheck would most likely not go through when deposited at the bank, therefore it means "all Bitwise work stops for the time being."

The company did not file a notice as required by California through the California Worker Adjustment Notification Act (WARN), which would deploy resources to help displaced workers.

Just last year, Soberal and Olguin announced Bitwise was expanding nationwide.

It added locations in Colorado, New York, Texas, New Mexico, and Wyoming.

FOX26 reached out to Soberal and Olguin for comment but did not hear back.

We also called attorneys for Nicbyte and were told, “We don’t comment on things like that.”

Assemblyman Jim Patterson's Office issued a statement on Thursday to offer assistance to Bitwise employees seeking unemployment.

Following the furloughing of hundreds of employees, Assemblyman Jim Patterson wants Bitwise employees to know that his office is available to help walk them through the process of filing for unemployment during this very difficult time.

Bitwise employees should file for unemployment at edd.ca.gov/en/unemployment and complete the identity verification process.

Those who need help filing a claim, have a delay accessing benefits or questions about the process should not hesitate to call Assemblyman Patterson’s Fresno office at 559-446-2029.

A staff member will reach out to EDD on behalf of the employee to provide timely, accurate information.

The process to file for unemployment may be faster now than it was during the pandemic. During that time, Assemblyman Patterson’s office helped more than 3,000 people seeking benefits.