Washington CFO Sentenced for Diverting $35M to Failed DeFi Venture
A former Washington CFO has been sentenced to two years in federal prison after siphoning $35 million from his employer to prop up a personal decentralized finance project that collapsed during the 2022 crypto winter. Nevin Shetty, 42, was convicted of wire fraud in November for secretly funneling company funds into HighTower Treasury, a DeFi scheme tied to his side venture.
The stolen capital—drawn from a private software firm where Shetty served as chief financial officer—evaporated when the Terra ecosystem implosion triggered a market downturn. The losses forced layoffs and nearly shuttered the victim company. Prosecutors revealed Shetty drafted conservative investment policies for the firm while simultaneously breaching them, transferring funds after learning of his impending termination.
