A federal grand jury has indicted David Hardcastle, 61, of Fresno, on charges of conspiracy to commit wire fraud and substantive wire fraud. Acting U.S. Attorney Michele Beckwith announced the indictment, which was unsealed following Hardcastle's arrest. He is expected to make his initial court appearance later today.
Andrew Adler, 31, from Greenwich, Connecticut, has also been implicated in the case. Adler has entered a plea agreement with the government and will plead guilty to conspiracy to commit wire fraud next month.
Court documents reveal that between December 2022 and May 2023, Hardcastle and Adler provided approximately $20 million in loans to Bitwise Industries through their company Startop Investments LLC. They allegedly altered loan documents to show reduced interest obligations for Bitwise and forged the signature of Jake Soberal, Bitwise’s Co-CEO. These actions purportedly made the loans appear less risky and more attractive to investors.
The pair reportedly earned tens of thousands in origination fees and stood to gain further undisclosed profits had the loans been repaid. One loan included a secure interest reserve of about $700,000 used by Hardcastle and Adler for another investment without investor consent. When Bitwise collapsed in May 2023, investors lost nearly all their money as these funds were unavailable for repayment.
This investigation was conducted by the Federal Bureau of Investigation with prosecution led by Assistant U.S. Attorneys Joseph Barton, Henry Carbajal III, and Cody Chapple.
If convicted, both Hardcastle and Adler face up to 20 years in prison and fines for conspiracy charges. Hardcastle could face additional penalties for substantive wire fraud charges. Sentencing would be determined based on statutory factors and Federal Sentencing Guidelines.
Both defendants are presumed innocent until proven guilty beyond a reasonable doubt.