Crypto Scandal: Ex-CFO Convicted For $35 Million Fraud

The ex-CFO of a private software company has been declared guilty of wire fraud after using the company’s cash to fund a cryptocurrency side business.

Crypto Side Hustle Gone Wrong

In a recent press release, the US Attorney’s Office, Western District of Washington, announced the conviction of Nevin Shetty, who misappropriated $35 million belonging to his former employer. The 41-year-old man from Mercer Island, Washington, resumed as the CFO of an unnamed private software company in March 2021, a time during which the firm was actively fundraising.

The company established an investment policy that stated that this newly raised cash should only be invested in money market accounts and other low-risk markets, while the company continued to focus on improving current business operations. 

Despite his heavy involvement in this policy decision, Nevin Shetty moved $35 million of the company’s cash into HighTower Treasury, a cryptocurrency investment platform founded by him and another partner in February 2022. The DOJ notes this embezzlement occurred after the company raised concerns about Shetty’s performance, hinting at possible severance.

The statement read:

In March 2022, he (Shetty) was told he could not continue as CFO at his employer due to concerns about his performance. Shortly after he got this news, Shetty secretly transferred the funds out of the company’s account. Between April 1 and 12, 2022, Shetty transferred $35,000,100 of his employer’s money to an account for HighTower Treasury. No other executives or board members at the company knew of these transfers.

The now-convicted criminal apparently placed these funds in a high-yield DeFi lending protocol that had promised 20% interest, with the intention of remitting 6% to the company and HighTower Treasury retained the other 14% profit. While the idea got off to a good start, generating $133,000 in the first month, the investments began hemorrhaging in the following month, eventually reaching $0 on May 13, 2022.

Shetty was subsequently fired after he informed colleagues of this escapade. The company also reported the situation to the FBI, prompting a full-scale investigation.

Shetty Awaits Sentencing

According to the DOJ, Shetty was convicted of four counts of wire fraud on November 7, 2025, following a 10-hour jury deliberation to close a nine-day jury trial. The US District Judge Tana Lin has now scheduled sentencing for the ex-CFO for February 11, 2026, to debate the consequences of such financial misappropriation.

While each wire fraud count carries a maximum prison sentence of 20 years, that does not necessarily mean he could face 80 years. Federal sentences are not always run consecutively, and the judge will follow the US Sentencing Guidelines, which take into account factors such as loss amount, role in the fraud, and his criminal history (if any).