$35M Corporate Crypto Bet Crashes, CFO Gets Prison Sentence

TLDR:

• Former CFO diverted $35M into DeFi lending platforms despite company policy requiring conservative investments.
• Crypto investments promising 20% yields collapsed within weeks, wiping out nearly all of the company funds.
• The software firm laid off 60 employees after the financial losses triggered a major restructuring.
• A federal court sentenced the executive to two years and ordered repayment of the full $35,000,100.

A former chief financial officer has received a two-year prison sentence after diverting $35 million in company funds into risky cryptocurrency investments. 

U.S. federal prosecutors said the executive secretly transferred the money to a DeFi platform he controlled. The funds quickly collapsed in value after being placed in high-yield crypto lending protocols. 

The case exposes how unauthorized crypto bets can devastate corporate finances.

CFO Moves $35M Into DeFi Lending Platforms

Nevin Shetty served as chief financial officer at a private software company beginning in March 2021. The firm raised capital to support growth and product development.

Company leadership adopted an investment policy designed to protect those funds. The policy restricted investments to conservative instruments such as money market accounts.

According to the U.S. Attorney’s Office for the Western District of Washington, Shetty helped draft that policy. However, he later transferred company funds into a cryptocurrency venture he secretly controlled.

Court records show Shetty launched a side company called HighTower Treasury in early 2022. The business had no outside customers.

Between April 1 and April 12, 2022, Shetty ordered wire transfers totaling $35,000,100 from a Chase branch near his home. The funds moved into HighTower Treasury accounts.

Prosecutors said Shetty then deployed the money across decentralized finance lending protocols. These platforms advertised yields exceeding 20 percent.

HighTower planned to return a smaller fixed payment to the software company. Shetty and his partner would keep the remaining profits.

Federal prosecutors stated the arrangement allowed Shetty to personally benefit from returns generated with company funds.

Crypto Investments Collapse Within Weeks

Initial results appeared profitable. According to court filings, the strategy generated roughly $133,000 in profits during the first month.

However, the DeFi investments soon deteriorated. Crypto market losses rapidly erased the value of the positions.

By May 13, 2022, the investment portfolio had nearly reached zero value. Almost the entire $35 million disappeared.

After the collapse, Shetty informed two fellow executives about the transfers. The company dismissed him immediately.

The financial damage forced the firm to restructure operations. Court documents state the company laid off around 60 employees after the loss.

The U.S. Attorney’s Office described the scheme as a calculated fraud carried out over several months. Prosecutors argued Shetty misled colleagues and financial institutions during the transfers.

Following a nine-day trial, a jury convicted Shetty in November 2025 on four counts of wire fraud. Federal investigators from the FBI’s Seattle field office supported the case.

A federal judge sentenced Shetty to two years in prison and ordered repayment of $35,000,100. He will serve three years of supervised release after prison.

The court also barred him from serving as a corporate officer without approval from a probation officer.

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