A former Washington state CFO has been sentenced to two years in prison for stealing $35 million in company funds and funneling them into a DeFi platform he operated. Nevin Shetty’s scheme unraveled after the Terra collapse crashed the value of his investments to near zero. His actions forced his former employer to lay off 60 staff, with the judge noting the fraud “almost put the company out of business.”
Nevin Shetty, 42, received a two-year prison sentence for wire fraud after diverting $35 million from his employer to his own DeFi platform, HighTower Treasury. According to a Department of Justice statement, Shetty made the unauthorized transfers after learning his role as CFO would be terminated due to performance issues.
He drafted a conservative company investment policy but secretly moved the funds into high-yield DeFi lending protocols. These investments initially generated about $133,000 in profits during the first month for Shetty and his HighTower partner.
The scheme collapsed in May 2022 following the Terra ecosystem failure. The value of Shetty’s crypto investments plummeted from $35 million to nearly zero.
Shetty confessed to colleagues and was fired from the company. The prosecution had sought a nine-year sentence, citing the “significant and severe effects” on the business, which was forced to lay off 60 people.
Judge Tana Lin imposed a sentence far lower than prosecutors requested. Shetty was also ordered to pay $35,000,100 and will face three years of supervised release after prison.
A special condition bars him from serving as a company officer or director without probation office permission. The judge stated his actions “almost put the company out of business.”
