Nevin Shetty Convicted of $35 Million Cryptocurrency Fraud Scheme

A significant legal case involving cryptocurrency fraud has concluded with the conviction of a former technology company executive. Nevin Shetty, who served as CFO of a private software firm, has been found guilty of orchestrating an elaborate scheme to divert company funds into a cryptocurrency venture he secretly controlled. The case highlights the growing risks when trusted financial officers exploit their positions for personal crypto investments.

When DeFi Dreams Turn Into Embezzlement Reality

The saga began in March 2021 when the 41-year-old Shetty from Mercer Island, Washington took on the role of CFO at an unnamed software company during an active fundraising period. His employer had established clear investment guidelines mandating that newly raised capital be placed exclusively in conservative instruments like money market accounts. The company prioritized protecting its war chest while focusing resources on core business growth.

However, Shetty had other plans. Just months later, in February 2022, he co-founded HighTower Treasury, a cryptocurrency investment platform. By March 2022, Nevin Shetty channeled $35 million from his employer’s treasury into this new venture. He positioned these funds in a decentralized finance lending protocol offering 20% returns—an attractive figure that promised $2.1 million annually. Under his scheme, the company would theoretically receive 6% of returns while HighTower Treasury kept 14%.

Initially, the strategy appeared to work. The first month generated $133,000 in earnings, seeming to validate the investment thesis. But the situation deteriorated rapidly. The DeFi protocol began experiencing losses, and by May 13, 2022, the entire position had collapsed to zero. When Nevin Shetty revealed the disaster to colleagues, the company immediately terminated his employment and escalated the matter to federal authorities.

Nevin Shetty Faces Maximum 80 Years Following Fraud Conviction

The consequences have been severe. On November 7, 2025, following a nine-day trial and jury deliberation, Nevin Shetty was convicted on four counts of wire fraud. The U.S. Attorney’s Office for the Western District of Washington secured the conviction after presenting evidence of his calculated misappropriation and breach of fiduciary duty.

The sentencing phase recently concluded, with U.S. District Judge Tana Lin overseeing the proceedings. While each wire fraud count theoretically carries a maximum 20-year sentence, the total exposure could reach 80 years. However, federal judges typically don’t impose consecutive sentences for related counts. Judge Lin applied the U.S. Sentencing Guidelines, which consider multiple factors including the loss amount, the defendant’s role in orchestrating the scheme, and any prior criminal history.

This case underscores a troubling pattern: high-ranking executives with access to capital are increasingly vulnerable to the siren song of speculative cryptocurrency opportunities. The gap between promised DeFi yields and actual risk often proves fatal to both investments and careers. For Nevin Shetty, the consequences of chasing high-yield crypto dreams at his employer’s expense have fundamentally altered his future.