Former CFO Sentenced for Diverting $35M Company Funds to Crypto Investments
Nevin Shetty, a 42-year-old former CFO from Mercer Island, Washington, has been sentenced to two years in federal prison for wire fraud after secretly funneling $35 million of his employer's funds into undisclosed cryptocurrency investments. The software company, which relied on conservative investment strategies to safeguard investor capital, faced severe financial distress—nearly collapsing and laying off 60 employees as a result of the missing funds.
During a nine-day trial concluding November 7, 2025, U.S. District Judge Tana Lin emphasized the recklessness of Shetty's actions, which violated the company's strict policy limiting investments to low-risk instruments like money market accounts. Court documents reveal Shetty joined the firm in March 2021 during a critical fundraising period, then exploited his position to redirect capital into volatile crypto assets without authorization.
