Andrew Adler, a 31-year-old businessman from Greenwich, Connecticut, admitted to scamming investors out of $20 million. On February 25, 2025, Adler pleaded guilty to conspiracy to commit wire fraud in a federal court. His fraudulent actions were linked to Bitwise Industries, a now-collapsed start-up based in Fresno, California.
According to federal prosecutors, Adler and his business partner, 61-year-old David Hardcastle of Fresno, ran a deceptive loan scheme through their company, Startop Investments LLC. Between December 2022 and May 2023, they provided $20 million in “hard money loans” to Bitwise. Hard money loans are high-interest, short-term loans, often used by businesses that need quick cash but don’t qualify for traditional bank loans.
However, instead of being honest with their investors, Adler and Hardcastle altered official loan documents to make the loans seem less risky. They secretly changed the interest rates on the papers, making it appear as though Bitwise was paying much less than it actually was. Even worse, they forged the signature of Bitwise’s Co-CEO, Jake Soberal, to make the fake documents look real. This tricked investors into thinking their money was safe when, in reality, it was at much greater risk.
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Millions in Secret Profits at Stake
Adler and Hardcastle made tens of thousands of dollars in loan origination fees. But that wasn’t their only plan. If Bitwise had paid back the loans, Adler and Hardcastle stood to make millions more from the hidden interest rates they never disclosed to their investors.
Unfortunately, Bitwise did not survive long enough to pay back the loans. The company collapsed, and the investors who funded the loans lost almost all of their money. What was supposed to be a profitable investment turned into a financial nightmare for those involved.
The fraudulent scheme did not go unnoticed. The FBI launched an investigation, which led to Adler’s guilty plea and Hardcastle’s arrest. On February 3, 2025, Hardcastle was formally charged with conspiracy to commit wire fraud and multiple counts of wire fraud. However, he has not yet been convicted and remains innocent until proven guilty in court.
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Legal Consequences and Sentencing
Adler is scheduled to be sentenced on June 2, 2025, by U.S. District Judge Jennifer L. Thurston. The charge of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The court will decide his sentence based on federal guidelines, which consider several factors, including the amount of money lost and Adler’s role in the scheme.
As for Hardcastle, he faces even more legal trouble. If convicted, he could also receive up to 20 years in prison for conspiracy to commit wire fraud, plus additional penalties for each wire fraud charge. His case is still ongoing, and he will have his day in court.
This case was brought to light through the efforts of the FBI, with Assistant U.S. Attorneys Joseph D. Barton and Cody S. Chapple leading the prosecution. The charges against Hardcastle are still just allegations at this stage, and he is legally presumed innocent until proven guilty beyond a reasonable doubt.
The collapse of Bitwise and the fraudulent actions of Adler and Hardcastle have left many investors with massive financial losses. This case serves as another reminder of the risks involved in high-stakes lending and the importance of verifying financial documents before making investments.
