Nevin Shetty was convicted of wire fraud associated to secretly transferring $35 million in funds from a Seattle startup to his personal crypto platform in 2022 to make use of for DeFi investments.
A Seattle judge has sentenced the former chief financial officer of a local startup to two years in prison following his conviction for wire fraud related to a cryptocurrency business.
In a Thursday notice, the US Justice Department said Nevin Shetty would serve two years in prison after he “secretly moved approximately $35 million in company funds to a cryptocurrency platform he controlled as a side business.” He moved the funds to the HighTower Treasury platform in 2022 before a crypto market downturn, resulting in the disclosure of the transfer.
According to the DOJ, Shetty was able to transfer the funds without any executives or board members at the Seattle startup knowing about it, then using the money to invest in “high-yield DeFi lending protocols that promised to generate returns of 20% or more.” He initially earned $133,000 in the first month before the collapse of the Terra ecosystem contributed to a significant market downturn.
“[T]he cryptocurrency investments that Shetty made with the stolen funds quickly started declining and by Might 13, 2022, the worth of the investments was practically zero,” stated the DOJ. “After the $35 million was primarily gone, Shetty instructed two of his fellow executives what he had completed. He was instantly fired.”
Shetty was indicted on expenses of wire fraud in Might 2023 and located responsible on 4 counts in November 2025 after a nine-day jury trial. He has been ordered to pay again the stolen funds and be on supervised launch for 3 years after serving his two-year sentence.
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Shetty’s 2022 case occurred months earlier than the collapse of cryptocurrency trade FTX, which later resulted within the arrest and conviction of its former CEO, Sam “SBF” Bankman-Fried. SBF was sentenced to 25 years in jail in 2024 however has filed to attraction the ruling. As of Friday, the US Court docket of Appeals for the Second Circuit had not introduced any resolution because it heard arguments in November.
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