TLDR
- Former chief financial officer Nevin Shetty covertly transferred $35 million in corporate assets into cryptocurrency ventures without authorization
- Corporate funds were deposited into decentralized finance platforms advertising yields exceeding 20%
- The Terra cryptocurrency meltdown in May 2022 decimated the entire investment to virtually nothing
- Following conviction on four wire fraud charges, Shetty received a two-year federal prison sentence
- Approximately 60 workers lost employment as a result of the scheme, with the company barely surviving bankruptcy
Nevin Shetty, who previously served as chief financial officer for a Seattle-based software company, will spend two years in a federal correctional facility after orchestrating an unauthorized $35 million cryptocurrency investment scheme using employer funds.
U.S. District Judge Tana Lin issued the sentence in a Seattle federal courthouse after Shetty’s conviction on four wire fraud counts. The verdict came after a nine-day jury trial that wrapped up on November 7, 2025.
When Shetty joined the software startup in March 2021 as CFO, the organization maintained rigorous investment protocols. Corporate policy mandated that all company reserves remain in low-risk, traditional financial instruments such as money market accounts.
Ironically, Shetty participated in drafting these very guidelines. Yet in early 2022, he established HighTower Treasury, a cryptocurrency investment operation. The venture had zero clients besides the one Shetty would soon add without permission.
After receiving notice in April 2022 that his employment as CFO would be terminated due to inadequate job performance, Shetty took drastic action. During a twelve-day period from April 1 through April 12, 2022, he executed wire transfers totaling $35,000,100 from a Chase banking location near his residence, routing the money into HighTower Treasury.
The company’s leadership team and board of directors remained completely unaware of these transactions.
Shetty subsequently placed the misappropriated capital into DeFi lending protocols. These cryptocurrency platforms advertised profit margins of 20% annually or higher.
Initial results appeared promising, generating approximately $133,000 during the first thirty days.
When the Crypto Market Collapsed
The profitable beginning proved short-lived. When the Terra blockchain ecosystem imploded in May 2022, it sparked a cascading cryptocurrency market downturn. By May 13, 2022, Shetty’s entire position had evaporated to essentially worthless.
Facing the reality that $35 million had vanished, Shetty confessed his actions to two executive colleagues. His termination followed immediately.
Judge Lin noted that the fraudulent scheme created devastating ripple effects. The missing capital forced the organization to eliminate roughly 60 positions and brought the company to the edge of complete financial collapse.
Federal prosecutors indicted Shetty on wire fraud allegations in May 2023. His conviction came in November 2025 following the jury’s decision, with sentencing handed down in March 2026.
Crypto Fraud Cases Continue in U.S. Courts
Shetty’s prosecution represents just one entry in a growing list of prominent cryptocurrency fraud prosecutions moving through the American legal system.
FTX CEO Sam Bankman-Fried, now a former executive, received a 25-year prison sentence in 2024. His attorneys have filed appellate motions, and as of this past Friday, the U.S. Court of Appeals for the Second Circuit has yet to deliver its decision after conducting oral arguments in November.
Beyond the two-year incarceration period, Shetty must provide complete restitution of the $35 million to his former employer. Following his release, he will remain under supervised release conditions for an additional three-year period.
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