TLDRNevin Shetty, former chief financial officer, covertly transferred $35 million in corporate assets to cryptocurrency platforms without authorizationFunds were deposited into decentralized finance protocols offering annual yields exceeding 20%The May 2022 Terra crash eliminated virtually all invested capitalFollowing conviction on four wire fraud charges, Shetty received a 24-month prison sentenceThe unauthorized investments resulted in approximately 60 job losses and nearly bankrupted the organizationA federal court has sentenced Nevin Shetty, who previously served as CFO for a Seattle-based software company, to 24 months behind bars after he illegally diverted $35 million in corporate assets into cryptocurrency ventures under his personal control.JUST IN: NEVIN SHETTY SENTENCED TO 2 YEARS IN PRISON FOR $35M DEFI THEFTShetty secretly moved $35 million in company funds to his side business HighTower TreasuryThose funds were then invested in high-yield DeFi lending protocols that promised returns of 20% or more.… pic.twitter.com/VIrKyXYp2N— BSCN (@BSCNews) March 6, 2026The sentence was delivered by a Seattle federal judge after a nine-day trial that wrapped up on November 7, 2025. The jury delivered guilty verdicts on all four wire fraud charges.Shetty assumed the chief financial officer position at the startup in March 2021. Company policy explicitly mandated that all corporate funds remain in low-risk, conservative investment vehicles such as money market accounts.Ironically, despite participating in drafting these investment guidelines, Shetty established a cryptocurrency consulting entity named HighTower Treasury in early 2022. The venture had zero additional customers.After learning in April 2022 that he would be stripped of his CFO responsibilities due to inadequate job performance, Shetty took action. Over a twelve-day period from April 1 to April 12, 2022, he executed wire transfers totaling $35,000,100 from a Chase banking location near his residence into HighTower Treasury accounts.Not a single board member or executive colleague had knowledge of these transactions.Shetty subsequently allocated the capital into DeFi lending protocols. These platforms advertised interest rates of 20% annually or higher.During the initial thirty days, the positions generated approximately $133,000 in gains.When the Crypto Market CollapsedThe initial profits proved short-lived. When the Terra blockchain ecosystem imploded in May 2022, it catalyzed a broader cryptocurrency market downturn. By May 13, 2022, Shetty’s portfolio had depreciated to essentially worthless.Facing the reality that $35 million had evaporated, Shetty disclosed his actions to two executive colleagues. His employment was terminated on the spot.U.S. District Judge Tana Lin emphasized the devastating impact of the fraud. The capital loss compelled the company to terminate roughly 60 employees and brought the business to the brink of insolvency.Shetty faced indictment on wire fraud counts in May 2023. His conviction came in November 2025 following the jury trial, with sentencing occurring in March 2026.Crypto Fraud Cases Continue in U.S. CourtsThis prosecution represents just one among numerous prominent cryptocurrency fraud proceedings that have advanced through federal courts recently.FTX CEO Sam Bankman-Fried, for instance, received a 25-year sentence in 2024. His attorneys have filed appellate briefs, and as of Friday, the U.S. Court of Appeals for the Second Circuit has yet to render a decision following oral arguments heard in November.Beyond the two-year incarceration period, Shetty faces an order to make full restitution of the $35 million. Following his release, he must complete three years under supervised probation.The post Seattle CFO Sentenced to Prison After Losing $35M in Secret Crypto Gamble appeared first on Blockonomi.