TLDR
- Nevin Shetty, former chief financial officer, covertly transferred $35 million from corporate accounts into cryptocurrency without authorization
- Funds were deposited into decentralized finance protocols advertising yields exceeding 20%
- The Terra blockchain meltdown in May 2022 obliterated the investment value
- Following a jury trial, Shetty received convictions on four wire fraud charges and a two-year prison sentence
- The unauthorized scheme resulted in approximately 60 layoffs and nearly bankrupted the organization
A Seattle federal court has sentenced Nevin Shetty, who previously served as CFO at a software startup, to two years behind bars for unauthorized transfer of $35 million in corporate assets into cryptocurrency investments under his personal control.
U.S. District Judge Tana Lin delivered the sentence after a nine-day trial by jury that reached its verdict on November 7, 2025. The jury determined Shetty was guilty of four wire fraud violations.
Shetty assumed the chief financial officer position at the firm in March 2021. Company policy explicitly mandated that all corporate funds remain in low-risk, traditional instruments such as money market accounts.
Although Shetty participated in drafting these investment guidelines, he established a cryptocurrency advisory venture named HighTower Treasury in early 2022. The business served no additional customers.
In April 2022, upon learning he would be stripped of his CFO responsibilities due to job performance issues, Shetty took action. During a 12-day window from April 1 through April 12, 2022, he executed wire transfers totaling $35,000,100 from a Chase banking location near his residence into HighTower Treasury accounts.
The board of directors and senior management remained completely unaware of these transactions.
Shetty subsequently allocated the capital to decentralized finance (DeFi) lending protocols. These platforms advertised annual percentage yields of 20% and higher.
During the initial 30 days, the positions generated approximately $133,000 in returns.
When the Crypto Market Collapsed
The initial gains proved short-lived. The May 2022 implosion of the Terra blockchain ecosystem sparked a broader cryptocurrency market downturn. By May 13, 2022, Shetty’s positions had plummeted to essentially worthless.
Facing the loss of $35 million, Shetty disclosed his actions to two executive colleagues. His employment was terminated immediately.
According to Judge Lin, the fraudulent conduct produced devastating consequences. The capital shortage forced the business to eliminate roughly 60 positions and brought the company to the edge of insolvency.
Federal prosecutors indicted Shetty on wire fraud allegations in May 2023. His conviction came in November 2025 following the jury trial, with sentencing handed down in March 2026.
Crypto Fraud Cases Continue in U.S. Courts
This prosecution joins a growing list of prominent cryptocurrency fraud cases adjudicated in American courtrooms over the past few years.
Former FTX CEO Sam Bankman-Fried received a 25-year prison term in 2024. His attorneys have filed an appeal, and as of Friday, the U.S. Court of Appeals for the Second Circuit has not released a decision following oral arguments heard in November.
Beyond the two-year incarceration period, Shetty must provide full restitution of $35 million. Following his release, he will remain under supervised probation for three additional years.
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