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Former CFO Sentenced to Prison for $35M Crypto Investment Fraud

Former CFO Sentenced to Prison for $35M Crypto Investment Fraud

Author:

Global Cryptocurrency

Published:

2026-03-08 09:13:01

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BTCCSquare news:

Nevin Shetty, the former CFO of a Seattle-based software startup, has been sentenced to two years in federal prison for wire fraud after secretly diverting $35 million of company funds into high-risk decentralized finance (DeFi) investments. The unauthorized move, which violated the firm's conservative investment policy, led to catastrophic losses when the Terra ecosystem collapsed in May 2022.

Shetty funneled the capital through his side venture, HighTower Treasury, into DeFi lending protocols promising 20%+ yields—a stark contrast to the company's mandated money market allocations. The subsequent wipeout triggered layoffs for 60 employees and nearly bankrupted the firm. A Seattle jury convicted him on four fraud counts following a nine-day trial.

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