$20 million settlement reached in lawsuit for former Bitwise employees

FRESNO, Calif. (KFSN) -- Lawyers representing erstwhile Bitwise employees person reached colony successful a people enactment lawsuit.

Two weeks agone Bitwise co-founders Irma Olguin Junior and Jake Soberal pleaded blameworthy successful the company's $115 cardinal fraud scheme.

RELATED: Bitwise co-founders officially plead blameworthy to charges

Federal prosecutors accidental Olguin and Soberal worked unneurotic to defraud investors and lenders.

The strategy continued until May of past twelvemonth erstwhile Bitwise ran retired of wealth and the institution collapsed.

RELATED: What is Bitwise? Explaining the emergence and autumn of the Fresno-based tech company

Lawyers representing the astir 900 employees that were laid disconnected accidental they reached a colony of astir $20 million.

"It's important for folks to cognize that people actions usually instrumentality years, the information that we got this colony successful spot this rapidly it's phenomenal it's truly grounds mounting but there's inactive a batch near to do,'' Roger Bonakdar, the lawyer representing erstwhile Bitwise Employees, said.

Bonakdar hopes to commencement distributing colony funds by the extremity of the year.

The Bitwise co-founder's are owed backmost successful tribunal connected November 6 for sentencing.

The 2 could present look up to 40 years successful national situation and fractional a cardinal dollars successful fines.