Former CFO Sentenced for Diverting $35M in Crypto Venture

A Seattle-based startup's former chief financial officer, Nevin Shetty, has been sentenced to two years in prison for diverting approximately $35 million of company funds into a cryptocurrency venture.

The scheme was allegedly carried out in 2022 when Shetty covertly redirected the funds to HighTower Treasury, a platform he controlled as part of his personal crypto ambitions. The money was then channeled into DeFi lending protocols that were touted as high-yield investments.

According to court records, the transfers went undetected by executives and the board until market volatility exposed the hidden accounts. Initial performance figures showed about $133,000 earned in the first month, but these gains quickly eroded as market conditions reversed.

The case has been described as a high-profile enforcement action in crypto-related corporate fraud and serves as a reminder of the risks involved when corporate resources are funneled into personal crypto ventures. Shetty was ordered to repay the stolen funds and will face three years of supervised release after serving his sentence.