Key Takeaways
- Seattle-based CFO Nevin Shetty transferred $35 million in corporate assets to crypto platforms without authorization from company leadership
- Funds were invested in DeFi lending services advertising annual returns exceeding 20%
- The May 2022 Terra crash obliterated the entire investment portfolio
- Shetty received a two-year federal prison sentence after being convicted on four wire fraud charges
- Approximately 60 workers lost employment as the company struggled to survive the financial loss
A former chief financial officer from Seattle has received a two-year federal prison term after orchestrating an unauthorized $35 million cryptocurrency investment using company capital.
Nevin Shetty faced sentencing from a federal judge in Seattle after a nine-day trial that reached its conclusion on November 7, 2025. The jury delivered guilty verdicts on all four wire fraud counts.
Shetty assumed the CFO position at the software startup in March 2021. Company policy mandated that all corporate funds remain in low-risk, traditional investment vehicles such as money market accounts.
Despite participating in the creation of these financial safeguards, Shetty established a cryptocurrency consulting venture named HighTower Treasury in early 2022. The business had zero additional customers.
After learning in April 2022 that he would be dismissed from his executive position due to job performance issues, Shetty took action. Over an 11-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 into HighTower Treasury accounts.
Company executives and board directors remained completely unaware of these transactions.
Shetty subsequently allocated the capital into decentralized finance (DeFi) platforms offering lending services. These platforms advertised potential yields of 20% annually or higher.
During the initial 30 days, the portfolio generated approximately $133,000 in gains.
The Terra Collapse Wipes Out Everything
The early profits proved short-lived. When the Terra blockchain ecosystem imploded in May 2022, it sparked a broader cryptocurrency market downturn. By May 13, 2022, Shetty’s investment portfolio had essentially become worthless.
Facing the loss of $35 million, Shetty disclosed his actions to two company executives. His employment was terminated immediately.
U.S. District Judge Tana Lin emphasized the devastating impact of the fraudulent scheme. The financial hole forced the organization to eliminate approximately 60 positions and brought the company to the brink of bankruptcy.
Federal prosecutors indicted Shetty on wire fraud charges in May 2023. Following his November 2025 conviction at trial, he received his sentence in March 2026.
Cryptocurrency Fraud Prosecutions Remain Active
This prosecution represents just one example among numerous prominent cryptocurrency fraud cases processed through federal courts recently.
FTX CEO Sam Bankman-Fried, who received a 25-year prison sentence in 2024, has filed an appeal through his attorneys. As of Friday, the U.S. Court of Appeals for the Second Circuit had not released its decision following oral arguments heard in November.
Beyond the prison term, Shetty must provide restitution of the complete $35 million amount. Following his incarceration, he will remain under supervised release for an additional three years.
