Like so many tech companies, Bitwise Industries had a grand vision: to transform underserved cities with technology-based solutions. The ascendant startup had almost 1,000 employees, a bevy of impressive investors and a valuation north of $200 million — and then it all came crashing down. In June, Bitwise filed for chapter 7 bankruptcy.
Intelligo’s monitoring systems were able to capture indicators that Bitwise was having issues months before it was public knowledge that the company was in trouble.
In April 2023, Intelligo’s Ongoing Monitoring tool flagged a legal alert for Bitwise. The company had sold off its rights to millions of dollars in tax credits for keeping employees on payroll during COVID-19. The legal complaint, filed by 1861 Acquisition LLC, alleged that when the IRS issued Bitwise Industries its refund checks, Bitwise deposited those into its accounts rather than turning over that money to the buyer of the credits, and then failed to make payments.
Not long after, things took a turn for the worse. The company furloughed, and then laid off its entire 900 person staff, and then it filed for bankruptcy.
By collecting and flagging adverse events and signals across media and legal sources, Intelligo’s systems could detect early on that Bitwise Industries was headed for trouble.
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