Bitwise Industries co-founders Irma Olguin Jr. and Jake Soberal have been arrested for allegedly executing a fraudulent scheme that swindled investors out of $100 million. They are accused of fabricating bank statements and providing false financial information to investors and their own board. The charges come after Bitwise furloughed 900 employees, causing disruption to its operations and putting the future of the company's commitments to various U.S. cities in doubt. Despite the scandal, Bitwise has amended its application for a Bitcoin ETF to offer investors regulated exposure to Ethereum and Bitcoin futures.