Former CFO Jailed for Transferring $35M in Company Funds to Crypto — Then the Market Crashed

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TLDR

  • Former CFO Nevin Shetty covertly transferred $35 million in company funds to cryptocurrency investments without the board’s awareness
  • The funds were invested in DeFi lending platforms that offered returns of 20% or higher
  • The May 2022 collapse of the Terra ecosystem reduced the investment to nearly nothing
  • Shetty was found guilty of four wire fraud charges and received a two-year prison sentence
  • The fraud led to approximately 60 employees being laid off and almost drove the company out of operation

Nevin Shetty, the former chief financial officer of a Seattle-based software startup, was sentenced to two years in federal prison for covertly transferring $35 million in company funds to cryptocurrency investments he managed.

A federal judge in Seattle imposed the sentence after a nine-day jury trial that ended on November 7, 2025. Shetty was convicted of four wire fraud charges.

Shetty joined the company as its CFO in March 2021. The firm had a strict investment policy mandating that funds be held in secure, conservative accounts such as money market funds.

Even though he helped draft that policy, Shetty started a cryptocurrency side business named HighTower Treasury in early 2022. The business had no other clients.

In April 2022, after learning he would be dismissed from his CFO position over performance issues, Shetty took action. From April 1 to April 12, 2022, he used wire transfers from a Chase bank branch close to his home to move $35,000,100 into HighTower Treasury.

No other executives or board members were aware of the transfers when they occurred.

Shetty then put the funds into decentralized finance (DeFi) lending platforms. These platforms guaranteed returns of 20% or higher.

The investments generated approximately $133,000 in profit during the first month.

When the Crypto Market Collapsed

That initial success was short-lived. The May 2022 collapse of the Terra ecosystem sparked a broader cryptocurrency market crash. By May 13, 2022, the value of Shetty’s investments had dropped to nearly zero.

With the $35 million virtually lost, Shetty informed two fellow executives of his actions. He was fired right away.

U.S. District Judge Tana Lin stated that the fraud had severe repercussions. The missing funds compelled the company to lay off roughly 60 employees and nearly put it out of business completely.

Shetty was charged with wire fraud in May 2023. He was found guilty in November 2025 following the jury trial and sentenced in March 2026.

Crypto Fraud Cases Continue in U.S. Courts

This case is among several high-profile cryptocurrency fraud cases that have proceeded through U.S. courts in recent years.

Former was sentenced to 25 years in prison in 2024. His legal team submitted an appeal, and as of Friday, the U.S. Court of Appeals for the Second Circuit had not yet released a ruling after hearing arguments in November.

Along with his two-year prison sentence, Shetty has been ordered to repay the entire $35 million. He will also serve three years of supervised release once his prison term is finished.