Nevin Shetty, the former chief financial officer of a Seattle software startup, has been sentenced to two years in federal prison after orchestrating a scheme to misappropriate $35 million in company funds into cryptocurrency investments controlled by him.
Shetty’s actions came to light following a nine-day jury trial that concluded on November 7, 2025, where he was found guilty on four counts of wire fraud. During the trial, it was revealed that Shetty had transferred the funds without the knowledge or consent of the board, directly violating the company’s strict investment policy, which mandated that funds be kept in conservative and secure accounts.
Joining the company in March 2021, Shetty helped draft the investment policies he would later breach. However, in early 2022, he launched a side business, HighTower Treasury, which operated without any other clients and served as the vehicle for his fraudulent activities.
In April 2022, amidst performance concerns that hinted at his potential removal from the CFO role, Shetty initiated the transfer of $35,000,100 into HighTower Treasury, using wire transfers from a nearby Chase bank branch. In a desperate bid to secure financial gains, he placed the funds into decentralized finance (DeFi) lending platforms that promised returns exceeding 20%.
Initially, his risky investments seemed fruitful, netting around $133,000 in profits within the first month. However, the promise of sustained gains came crashing down during the infamous collapse of the Terra ecosystem in May 2022, which triggered a broader crypto market turmoil. By mid-May, Shetty’s once-booming investments had plummeted to nearly zero.
Seemingly unfazed by the chaos, Shetty eventually confessed his actions to two fellow executives after the funds were rendered practically worthless, resulting in his immediate termination.
U.S. District Judge Tana Lin, who presided over the case, emphasized the severe repercussions of Shetty’s fraud, which not only jeopardized the financial health of the company but also led to approximately 60 layoffs, nearly pushing the organization into insolvency.
Shetty’s indictment for wire fraud came in May 2023, with his sentencing occurring in March 2026, marking a significant downfall for the CFO who had once been entrusted with the company’s finances.
This case adds to a growing list of high-profile fraud cases related to cryptocurrencies making their way through U.S. courts in recent years. Notably, former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison for his involvement in substantial fraud within the crypto space. As of late, an appeal from Bankman-Fried’s legal team remains pending in the U.S. Court of Appeals for the Second Circuit.
In addition to his prison sentence, Shetty has been ordered to repay the full amount of $35 million, in what serves as a stark reminder of the consequences of financial misconduct. Moreover, following his prison term, he will undergo three years of supervised release.
