TLDR

  • Nevin Shetty, former CFO, transferred $35 million in corporate assets to cryptocurrency platforms without authorization from company leadership
  • Funds were deposited into DeFi lending services offering annual returns exceeding 20%
  • The Terra blockchain collapse in May 2022 eliminated virtually all invested capital
  • Federal jury convicted Shetty on four wire fraud charges, resulting in a two-year prison sentence
  • Approximately 60 staff members lost employment as the company struggled to survive financially

A federal court has sentenced Nevin Shetty, who served as CFO at a Seattle-based software startup, to two years in prison for unauthorized transfer of $35 million in corporate funds into cryptocurrency investments under his control.

The Seattle federal judge issued the sentencing after a nine-day trial by jury that reached its conclusion on November 7, 2025. The verdict found Shetty guilty on four separate wire fraud charges.

Shetty began his tenure with the company in March 2021, taking on the chief financial officer position. Corporate policy required all company capital to remain in low-risk, conservative investment vehicles such as money market accounts.

Shetty participated in drafting this investment policy. Despite this involvement, he established a cryptocurrency management business named HighTower Treasury in early 2022. The venture had zero additional customers.

Following notification in April 2022 that his CFO position would be terminated due to performance issues, Shetty took action. During the 12-day period from April 1 through April 12, 2022, he executed wire transfers totaling $35,000,100 from a Chase bank location near his residence to HighTower Treasury.

Company executives and board members remained completely unaware of these financial movements.

Shetty proceeded to allocate the transferred capital into decentralized finance lending platforms. These DeFi services advertised potential yields of 20% annually or higher.

During the initial 30-day period, the investments generated approximately $133,000 in gains.

When the Crypto Market Collapsed

The positive returns proved temporary. The Terra ecosystem experienced a catastrophic failure in May 2022, setting off a broader cryptocurrency market downturn. By May 13, 2022, Shetty’s investments had declined to nearly worthless.

Facing the loss of virtually all $35 million, Shetty disclosed his actions to two executive colleagues. The company terminated his employment immediately.

U.S. District Judge Tana Lin emphasized the severe impact of the fraudulent activity. The capital loss forced the company to terminate employment for approximately 60 workers and brought the business to the edge of complete failure.

Federal authorities indicted Shetty on wire fraud charges in May 2023. Following his conviction in November 2025 after the jury trial, he received sentencing in March 2026.

Crypto Fraud Cases Continue in U.S. Courts

This prosecution represents one among multiple prominent cryptocurrency fraud cases advancing through the U.S. judicial system in recent years.

FTX CEO Sam Bankman-Fried, who formerly led the exchange, received a 25-year prison sentence in 2024. His attorneys filed an appeal, and as of Friday, the U.S. Court of Appeals for the Second Circuit had yet to publish a decision following oral arguments heard in November.

Beyond the two-year incarceration period, Shetty faces an order to restore the complete $35 million amount. Following his release from custody, he will remain under supervised release for three additional years.