FRESNO, Calif. (KSEE/KGPE) – Bitwise co-founders Jake Soberal and Irma Olguin, fired as the tech company’s CEO’s, after the company furloughed all of its over 900 employees.

It all comes as light continues to shine on the Fresno tech giant’s financial woes.

Bitwise employees received an email Friday from Ollen Douglass, a board member for the company.

In it, he told them Soberal and Olguin had been terminated, and said he had been appointed interim president of Bitwise.

The email reads in part, “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.”

Douglass later in a statement said that the board is investigating just how the company’s financial situation got to this point.

“It seems to me like the appropriate action for the board of directors, and the clearest indication that the company may not survive its current form,” said Fresno City Councilmember for District 3, Miguel Arias.

Arias says the ripple effects could certainly hit the city and downtown Fresno.

The official announcement came just a day after the landlord for Bitwise’s building at 2721 Ventura Street posted a “notice of belief of abandonment”.

That notice stated rent has been due and unpaid for over 60 days, and that the lease will be terminated unless the company pays, states it doesn’t wish to abandon the property, and that it provides an address for where it can be reached.

“The city is gonna have to figure out how to work with the property owners, whatever’s left of Bitwise, and the other company, the other buildings that they don’t own, to figure out how we match potential new tenants,” said Arias.

Saturday, we obtained a copy of the signed American Rescue Plan partnership proposal for the $1 million dollar grant awarded to Bitwise.

It’s clearly signed by former co-CEO Jake Soberal.

Fresno City Attorney Andrew Janz says they’re now investigating the grant and the rest of Bitwise’s long list of reported wrongdoings.

“If you misrepresent information when you’re applying for federal or state dollars, those are serious felonies. Also, there are allegations that the board of directors mishandled certain 401k contributions. Again, the possibility of federal crimes there as well,” said Janz.

He says while the city has no power to prosecute in the case, they could refer the case to county, state, or federal authorities.