The ex-CFO of a personal software program firm has been declared responsible of wire fraud after utilizing the corporate’s money to fund a cryptocurrency facet enterprise.
Crypto Facet Hustle Gone Improper
In a latest press launch, the US Lawyer’s Workplace, Western District of Washington, introduced the conviction of Nevin Shetty, who misappropriated $35 million belonging to his former employer. The 41-year-old man from Mercer Island, Washington, resumed because the CFO of an unnamed non-public software program firm in March 2021, a time throughout which the agency was actively fundraising.
The corporate established an funding coverage that acknowledged that this newly raised money ought to solely be invested in cash market accounts and different low-risk markets, whereas the corporate continued to concentrate on enhancing present enterprise operations.
Regardless of his heavy involvement on this coverage choice, Nevin Shetty moved $35 million of the corporate’s money into HighTower Treasury, a cryptocurrency funding platform based by him and one other companion in February 2022. The DOJ notes this embezzlement occurred after the corporate raised issues about Shetty’s efficiency, hinting at potential severance.
The assertion learn:
In March 2022, he (Shetty) was advised he couldn’t proceed as CFO at his employer on account of issues about his efficiency. Shortly after he received this information, Shetty secretly transferred the funds out of the corporate’s account. Between April 1 and 12, 2022, Shetty transferred $35,000,100 of his employer’s cash to an account for HighTower Treasury. No different executives or board members on the firm knew of those transfers.
The now-convicted legal apparently positioned these funds in a high-yield DeFi lending protocol that had promised 20% curiosity, with the intention of remitting 6% to the corporate and HighTower Treasury retained the opposite 14% revenue. Whereas the concept received off to a very good begin, producing $133,000 within the first month, the investments started hemorrhaging within the following month, finally reaching $0 on Might 13, 2022.
Shetty was subsequently fired after he knowledgeable colleagues of this escapade. The corporate additionally reported the state of affairs to the FBI, prompting a full-scale investigation.
Shetty Awaits Sentencing
In response to the DOJ, Shetty was convicted of 4 counts of wire fraud on November 7, 2025, following a 10-hour jury deliberation to shut a nine-day jury trial. The US District Decide Tana Lin has now scheduled sentencing for the ex-CFO for February 11, 2026, to debate the results of such monetary misappropriation.
Whereas every wire fraud depend carries a most jail sentence of 20 years, that doesn’t essentially imply he might face 80 years. Federal sentences usually are not all the time run consecutively, and the choose will comply with the US Sentencing Tips, which have in mind elements equivalent to loss quantity, position within the fraud, and his legal historical past (if any).
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